01/12/2020 Asian equities markets, and U.S. futures, gained traction on Tuesday amid positive factory activity data out of China and optimism that vaccines will bolster the global economy. Wall Street stocks closed firmly in the red on Monday following a record-setting Thanksgiving week. Tesla Inc. will be added to the S&P 500 Index in one shot on Dec. 21, a move that will ripple through the market as managers adjust their portfolios to make room for shares of the $538 billion company. The electric-vehicle maker will be the seventh-biggest company in the S&P 500 at its current market value. Gold edged up, Oil fell for a third day as OPEC+ sought more time to reach a deal on production policy after a meeting broke down without an agreement. The JSE ended the month of November on a weak note as investors sought to take profits and some stock rotation in the MSCI taking place at the close of trading. The All-Share index closed 1.3% lower, while the Top-40 fell 1.2%. The JSE gained 10.5%, its best performance since April, while the index remains flat 0.01% YTD. The local currency on the backfoot 0.06% to the dollar at R15.4230.
• Goldilocks Year Awaits Emerging Markets Defying Pandemic Rout
• Eskom to Be Charged With Misleading Regulator Over Pollution
EARNINGS: (All times Central African Time)
• 7am: Nampak (NPK SJ), FY through September
• Naamsa vehicle sales for November, y/y est. -20.8%, prior -25.4%
• Department of Minerals & Energy briefing on sale of strategic fuel stock
• Annual general meeting: DRD SJ
• Scotia Bank mining conference: GFI SJ
Markets in the EU zone closed in the red on Monday, as investors kept an eye on the looming collapse of Arcadia Group and digested rocketing mortgage approvals in the UK. The pan- European Stoxx 600 index was off 0.98%, a rotation into value shares sending the index up 14% in November. The FTSE100 ended the session down 1.59%, alongside the CAC-40 loosing 1.42%.
The Dow closed 271.73 points lower, or 0.91%, on Monday; while the S&P 500 was 0.46% weaker and the Nasdaq Composite saw out the session 0.06% softer. The Dow posted its biggest monthly gain since January 1987 with an advance of nearly 11.9%. In the S&P 500: the energy, financials and industrials sectors led the index’s 10.8% rise, as traders rotated back into many of the names that had been beaten down the hardest earlier on during the pandemic. U.S Futures:- Dow futures +231 (0.80%) , S&P500 futures +29.75 (0.82%) and the Nasdaq futures +98.75 (0.80%). White House was contemplating blacklisting major Chinese chipmaker SMIC and national offshore oil and gas producer CNOOC, escalating tensions between Washington and Beijing ahead of president-elect Joe Biden’s transition into the Oval Office.
These are some key events coming up:
• Federal Reserve Chairman Jerome Powell testifies before Congress on Tuesday and Wednesday.
• The U.S. employment report on Friday is expected to show more Americans headed back to work in November, though at a slower pace than October.
Asian markets gain on strong Chinese manufacturing data. The China Caixin PMI came out at 54.9 vs 53.5 survey. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.26% on Tuesday after closing the month 9% higher, the best November since 2001. Japan’s Nikkei and Australia’s S&P/ASX 200 were each 1.20% higher, while China’s blue-chip CSI300 index was 1.36% higher on Tuesday, after data on Monday that pointed to a continued recovery in the world’s second-largest economy against the backdrop of the COVID-19 pandemic.