25/11/2020 Global equities are on course for the best month on record as a rally picked up steam and cash continued to flow into cyclical sectors. The dollar held a decline. Asia-Pacific shares are up this morning, with energy and financial stocks leading the advance, though gains fizzled in China and South Korea. S&P 500 futures are coming off earlier highs after the benchmark index closed at an all-time high and the Dow Jones Industrial Average topped 30,000 for the first time. Treasuries steadied after the yield curve. Oil held above $45 a barrel in New York. Copper reached the highest since 2014. Tencent trades 1.6% lower in HK. The JSE Top 40 futures are indicating a slightly lower start, down 82 points or 0.15%, with the Rand slightly weaker from earlier levels -0.23% vs the USD.
Locally the FTSE/JSE Africa All-Share Index closed up 1.1% to 57,761, with SA Inc names outperforming on a stronger rand as risk on continues. The banking, property and retail sectors gained the most adding 3.6%, 2.5% and 1.5% respectively, with the save haven gold sector weighing the most down 5.8%. Platinum stocks also saw a 4.6% decline on the day. The Rand was up 1.3% to 15.30 per US$ at 6:37pm, with the Yield on 10 year govt rand bonds that fell 2.9 bps to 8.872%.
South Africa’s annual inflation rate stood at 3.0% in October, unchanged from a month earlier, according to the median estimate of 15 economists surveyed by Bloomberg. Prices are seen unchanged in the month compared to a 0.2% increase in September. Statistics South Africa will publish the data at 10 a.m.
- S. Africa’s Mboweni Says PIC Willing to Help Eskom Resolve Debt
- South Africa Paid Covax 500 Million Rand for Vaccine Access
- South Africa May Open Equity Offering in SAA to Public: Mboweni
- S. Africa’s Rising Debt Is ‘Major’ Threat to Finance Sector
- JSE Seeing ‘Outperformance’ in Social Responsibility Index: CEO
- Transaction Capital to Use Surplus Cash to Buy More Loan Books
- 10am: Oct. CPI y/y est. YoY, est. 3.0%, prior 3.0%; m/m est. 0.0%, prior 0.2%
- CPI core y/y est. 3.2%, prior 3.3%; m/m est. 0%, prior 0.2%
- 12pm: 4Q BER Business Confidence, prior 24
European stocks closed higher yesterday amid growing optimism that another effective coronavirus vaccine has been discovered, and on news that the Trump administration has accepted President-elect Joe Biden’s transition into office. The pan-European Stoxx 600 gained 0.8% by the close, oil and gas stocks bouncing 4.3% to lead gains as almost all sectors and major bourses entered positive territory. Health care stocks bucked the trend to fall 0.7%. Germany’s DAX ended up 1.26%, while France’s CAC gained 1.2%, with London’s FTSE 100 closing up 1.5%. Germany’s economy grew by a record 8.5% in the third quarter. The sharp incline in GDP (gross domestic product) was revised upward from an initial flash estimate of 8.2% and followed a 9.8% drop in the second quarter as lockdown measures weighed on activity. Shares of Norwegian real estate company Entra rose nearly 20% amid takeover speculation. At the other end of the European blue chip index, German meal kit delivery company Hellofresh dropped 7.5%.
The Dow Jones Industrial Average rallied on Tuesday, breaking above 30,000 for the first time amid positive vaccine news, hope for a strong economic recovery in 2021 and easing of political uncertainty as the Trump administration approved the start of the presidential transition. The 30-stock Dow surged 454 points, or 1.5%, to close at 30,046. At its high of the day, it traded at 30,116.51. Chevron rose 5% to lead the Dow higher. JPMorgan Chase and Goldman Sachs rose 4.6% and 3.8%, respectively. Meanwhile, the S&P 500 climbed 1.6% to 3,635, notching a record close, and the Nasdaq Composite advanced 1.3% to 12,036. The small-cap Russell 2000 also hit an all-time high, gaining 1.9% to end the day at 1,853. Tuesday’s gains put the Dow up more than 13% for the month, which would be its biggest monthly gain since 1987. The S&P 500 and Nasdaq are up 11.2% and 10.3%, respectively, in November. It would be the Nasdaq’s and S&P 500′s best monthly performances since April.
Stocks in Asia-Pacific mostly rose in Wednesday trade following a record session on Wall Street as coronavirus vaccine hopes and reduced uncertainty in U.S. politics buoy investor sentiment. In Japan, the Nikkei 225 rose 1.23% while the Topix index gained 0.84%. The Hang Seng index in Hong Kong also advanced 0.85%. South Korea’s Kospi advanced 0.35%. Over in Australia, the S&P/ASX 200 rose 0.82%. Mainland Chinese stocks lagged: The Shanghai composite dipped 0.22% while the Shenzhen component shed 0.76%. MSCI’s broadest index of Asia-Pacific shares outside Japan edged 0.26% higher. Hong Kong-listed shares of Chinese smartphone maker Xiaomi fell 3.5%. The declines came despite the firm posting a roughly 19% year-over-year surge in its adjusted net profit for the three months ended Sept. 30.
Oil kept rising after closing at a eight- month high on increasing optimism that recent Covid-19 vaccine breakthroughs will lead to a swift recovery in global energy
demand next year. Futures in New York climbed around 1% to trade above $45 a barrel as a broader financial markets rally continued.
Gold traded near $1,800 an ounce as progress on vaccines and the start of President-elect Joe Biden’s formal transition damped demand for the haven. Spot gold was 0.2% lower at $1,803.99 an ounce at 12 p.m. in Singapore after dropping 3.4% in the first two days of the week to the lowest level since July. Silver slipped 0.1%, platinum added 0.3%, while palladium declined 0.6%.
Copper Jumps to Six-Year High as Strong Demand to Fuel Deficit. It rose as much as 0.9% to $7,360 a metric ton on the London Metal Exchange, the highest since January 2014, before trading at $7,312 a ton at 11:41 a.m. in Shanghai. Futures in New York were also at the highest since 2014, while the contract in China touched the highest since 2018. In other markets, aluminum advanced 0.4% and nickel declined 0.3%.