27/10/2020 Asian markets weaker on Tuesday taking que from Wall Street on concern rising coronavirus cases will hurt the global economy and as stimulus talks in Washington dragged on. U.S. stock index futures mixed. The S&P 500 headed for its biggest daily decline in almost seven weeks. Ongoing spending talks in Washington continued to weigh on sentiment as prospects dimmed for fiscal aid before the presidential election. The dollar slipped and 10-year Treasury yields retreated below 0.8%. Oil climbed, while gold edged higher. Locally, the JSE slipped 0.81% to 54,890.88 as market participants await the MTBS on Wednesday. The Top-40 also gave 0.80% at the end of trading, dragged down by the likes of AMS SJ -2.92% and NED SJ -3.83%. The local currency is 0.6% firmer, hovering at R16.1700 to the dollar this morning. Tencent Surges After U.S. Court Upholds Stay on WeChat Ban. The Trump administration lost a bid to enforce its prohibitions against the Chinese-owned “super app” WeChat in the U.S. after appealing a judge’s ruling that the ban probably violates the free-speech rights of its users. Tencent is 3.20% firmer in the green on Tuesday in Asia.
• Lira weakens past 8 against dollar for the first time as currency rout deepens
• Cash crunch forces Land Bank to slash lending to farmers
• Tom Moyane will question Pravin Gordhan at Zondo inquiry in November
• Court deals major blow to NPA’s bid to claw back cash lost from Transnet
European stock markets finished weaker on Monday, amid doubts over US stimulus and ongoing concerns about the Covid-19 pandemic and increasing restrictions. The pan-European Stoxx 600 fell 1.81%, alongside a 3.71% slump for the German DAX, while the FTSE 100 ended the session down 1.16%. SAP plummeted as much as 23%, its steepest intraday drop since 1996, after cutting its revenue forecast for the full year and warning that it expects the coronavirus pandemic to hurt demand through “at least” the first half of 2021. Italy announced the closure of: bars, restaurants, cinemas, pools and gyms as it tried to stymie a second coronavirus outbreak, with the tighter restrictions set to last for a month.
US has recorded a surge in new covid-19 cases on Friday and Saturday, with 83,000 fresh infections on both days after a series of outbreaks across the Southern States, according to Johns Hopkins University, topping the previous all-time high of roughly 77,300 seen back in July. The Dow 650 points lower, or 2.3%, alongside the S&P 500 falling 1.9% – the most since Sept. 23, while the Nasdaq Composite dropped 1.6%. In corporate news:
Apple, Facebook, Alphabet, Amazon, Boeing and Caterpillar will all report later in the week. Dow futures marginally up 70 points, or 0.25%, and so are the S&P 500 at 0.21%, while the Nasdaq’s are tagging along at 0.20%.
The gloom from Wall Street was carried into Asia on Tuesday, with stock benchmarks falling in Tokyo, Shanghai, Hong Kong and Sydney. Japan’s Nikkei 225 lost 0.22% and the Hang Seng in Hong Kong slumped 0.90%. Australia’s ASX 200 sank 1.53%, while the Shanghai Composite gave up 0.3%. Oil prices steady but sentiment remained subdued as a surge in global coronavirus cases hit prospects for crude demand while supply is rising.
Gold was up on Tuesday morning, boosted by a weak dollar. Gold futures were up 0.29% at $1,907.30, staying above the $1,900 mark.