07/12/2020 A global equity rally showed signs of stalling this morning as investors weighed signs the deployment of a vaccine may be nearing against renewed U.S.-China tensions. Asian shares traded mixed with Hong Kong stocks underperforming, while U.S. and European futures contracts edged down. The S&P 500 Index notched a fresh all-time high on Friday. Testing the positive sentiment today was news that the U.S. is preparing sanctions on some Chinese officials.
The US state of California has reintroduced lockdown measures as a second wave grips the country, which has reported record case numbers and hospitalisations.
The JSE gained for the fourth day on Friday, reaching its best level in four years on Covid-19 vaccine and US stimulus optimism, even as new Covid-19 restrictions threatened sentiment. The all share gained 0.71% and the top 40 rose 0.51% We should see the local market open lower with Tencent down 1.10% and IG Top 40 futures down 274.
• Europe Readying Vaccine Rollout; U.K. Spread Slows.
• Glencore CEO Ivan Glasenberg to Retire, Succeeded by Gary Nagle.
• MTN Names Telkom’s Tsholofelo Molefe as New Group CFO.
• KAP Raised to Buy at Investec; PT 3.70 rand
ECONOMIC DATA :
8am: (SA) Nov. Gross Reserves, prior $53.7b
8am: (SA) Nov. Net Reserves, est. $52.2b, prior $51.4b
European markets closed higher on Friday as investors monitored prospects of a U.S. stimulus package and a last-minute Brexit trade deal. The pan-European Stoxx 600 closed up 0.6%, with oil and gas stocks climbing 3.1% to lead gains after OPEC+ members agreed on Thursday to increase production by 500,000 barrels per day beginning in January. Retail stocks declined by 0.5%. FTSE +0.92% CAC +0.62% DAX 0.35%
The major averages posted intraday and closing all-time highs on Friday, with the Dow popping more than 200 points. The S&P 500 and Nasdaq Composite advanced 0.9% and 0.7%, respectively. Those gains came even after the release of disappointing U.S. jobs data. The Labor Department reported that 245,000 were created in November. Economists polled by Dow Jones had forecast that 440,000 were added last month. The unemployment rate, however, matched expectations by falling to 6.7% from 6.9%.
Asia-Pacific markets lost steam mid-morning on Monday, with Hong Kong shares down more than 2%. Australia’s ASX 200 was up 0.36%, trimming some of its earlier gains of more than 1%. Energy and mining stocks were mostly up — shares of Rio Tinto rose 2.03%, Fortescue was up 3.76% and BHP added 1.87%. the AUD Mining Index is up 1.69%.
Gold is trading marginally higher up $ 2.00 at $ 1841 as hopes of a U.S. fiscal stimulus package being passed this week countered downward pressure from optimism around Covid-19 vaccines roll-outs. Silver fell 0.1% to $24.13 per ounce and platinum eased 0.2% to $1,052.86, while palladium gained about 1% to $2,366.60.
Oil prices are drifting this morning as a continued surge in coronavirus globally forced a series of renewed lockdowns, including strict new measures in Southern California. Brent – 0.26% $ 49.11, WTI – 0.32% $ 46.11