11/11/2020 Most Asian stocks pushed higher Wednesday after a rotation out of defensive technology names into shares more exposed to economic growth continued in the U.S. overnight. Equities in Japan and Australia climbed more than 1%, but a technology selloff in China deepened following Beijing’s crackdown on the Internet industry. S&P 500 futures edged up after the benchmark pulled back from a two-month high Tuesday, when the Nasdaq 100 index slid almost 2%.
The JSE AllShare close up 0.64% yesterday although it felt much better than that, once again local names led the market higher with Banks up 4.26%, Retailers + 4.08% and Golds up 3.76%. NPN and PRX held the market back finishing the day down 5.70 and 5.49 % respectively. We can expect to see further selling in these names as Tencent is down another 5.63% on Beijing unveiled regulations to root out monopolistic practices in the technology industry.
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The pan-European Stoxx 600 nudged higher to close up around 0.1% provisionally. Tech stocks dropped 1.9% while banks surged 4.4% as signs of a rotation from growth to value emerged. FTSE +1.79%, CAC + 1.55%, DAX + 0.51%.
U.S. equity futures are higher in morning trade, as this week’s rotation out of technology stocks into cyclical names continues. Dow futures added 92 points. S&P 500 futures and Nasdaq 100 futures both traded in mildly positive territory. Overnight Dow climbed 262 points. Fueling the rally is the hopes of a return to normal economic activity with an effective Covid-19 vaccine. The small cap Russell 2000 also outperformed, gaining 1.75%. The S&P 500 fell 0.14%. The technology-heavy Nasdaq Composite lost 1.4%, with Microsoft, Amazon, Facebook and Alphabet all closing in the red.
• In Asia, Alibaba set a new sales record of $ 56.42 for the annual Singles Day shopping event, a feat that was overshadowed by a 8% stock plunge caused by proposed new Chinese antitrust regulation. Hong Kong-listed shares of Chinese tech giants Alibaba and Tencent dropped 8.13% and 4.87%, respectively. JD.com also fell 7.32% while Meituan declined 5.73%. That came after China’s State Administration for Market Regulation on Tuesday announced a set of draft guidelines aimed at curbing monopolistic behavior on internet platforms. ASX 200 + 1.77%, Aussie Miners + 0.61%, Nikkei + 1.57%, HangSeng + 0.18%.
• Oil prices rose on Tuesday as hopes that a COVID-19 vaccine could be on the horizon outweighed the expected negative impact on fuel demand of new lockdowns to curb the virus. Brent + 0.96% $ 44.03, WTI + 1.06% $ 41.78. This after both rising 8 % on Monday in their biggest daily gains in more than five months. Gold is steady $ 1882, Silver rose 0.2% to $24.12 an ounce. Platinum gained 0.2% to $868.45 and palladium was 0.3% higher at $2,484.67.