U.S. and European equity futures lower / Asian stocks slipping

30/10/2020 Fresh concerns about the outlook for technology giants are dragging U.S. equity futures lower, while European futures and Asian stocks are also slipped this morning. The dollar gave back some of its advance from the prior session. Shares in Japan, Hong Kong and China are all down over 1%, though declines were more modest in Australia. Contracts on the Nasdaq 100 and S&P 500 sank following a string of reports from the likes of Amazon.com Inc. and Apple Inc., with the iPhone maker down more than 4% in after-hours trading. Tencent trades 2.5% lower in HK. Crude oil are down over 1%. The JSE Top 40 futures are indicating a lower start, down 500 points, or 1.1%.

Locally the FTSE/JSE Africa All-Share Index closed down 0.8% to 51,896, mostly dragged down by SA Inc stocks on a weaker Rand, with Banks and Retailers giving up 3.03% and 1.78% respectively. Sasol also weighed shedding a hefty 11.8%.The Rand was down 0.2% to 16.40 vs the USD, with the Yield on 10 year govt rand bonds that fell 3.2 bps to 9.271%
State-owned power utility Eskom Holdings will release its annual results after a three-month delay.

  • (NED SJ): Nedbank Performance Improved in 3Q; FY HEPS Guidance Unchanged

EARNINGS:

  • MTN (MTN SJ)
  • Spear (SEA SJ)

ECONOMIC DATA:

  • 2pm: Sept. trade balance, est. 30b, prior 38.9b
  • 2pm: Sept. monthly budget balance, est. -37.3b, prior -63.7b

EU/UK
The pan-European Stoxx 600 closed down by a marginal 0.12%, having been higher earlier in the session, after European stocks had suffered their worst single-day drop since late September on Wednesday as Germany and France announced fresh lockdown measures in a bid to fend off the new wave of Covid-19 cases sweeping through Europe. Travel and leisure stocks bucked the downward trend to add 2.4% while media stocks fell 1% to lead losses, with most sectors and major bourses giving up earlier gains to close mostly in negative territory. Germany’s DAX bucked the trend to end up 0.32%, while France’s CAC down a marginal 0.03%, with London’s FTSE 100 closing down a mere 0.02%.. The British government is also under pressure to tighten restrictions with cases doubling every nine days, according to a new study by Imperial College London. The ECB on Thursday opted to hold interest rates steady and keep its broader monetary policy environment unchanged despite the reimposition of fresh lockdown measures across the continent, but it suggested that additional policy action in the euro zone could come as soon as December.
US
Stocks rose on Thursday, clawing back some of their losses from the previous session, as shares of major tech companies advanced ahead of their quarterly earnings reports. Sentiment also got a lift from better-than-expected economic data. The S&P 500 climbed 1.2% to 3,310 and the Nasdaq Composite advanced 1.6% to 11,185. The Dow Jones Industrial Average closed 139.16 points higher, or 0.5%, at 26,659. Thursday marked the first daily gain for the Dow in five days. The S&P 500 snapped a three-day slide. Shares of Amazon and Apple rose 1.5% and 3.7%, respectively. Alphabet closed 3.1% higher and Facebook popped nearly 5%. Six of the 11 S&P 500 sectors gained more than 1%, including tech and communication services. Netflix, meanwhile, surged more than 5% after the company announced it will raise prices for U.S. subscribers. Amazon and Alphabet reported better-than-expected earnings after the bell along with Facebook. Apple was slated to report later in the evening.
COMMODITIES
Oil is poised for the biggest monthly slide since March on concern a resurgent pandemic in the U.S. and Europe will keep people hunkered down, crimping demand for auto and aviation fuel. Futures have tumbled 9.8% this month in New York and they’re near the lowest since late May in London.
Gold climbed to trim a third monthly drop, the longest run since 2019, as investors awaited next week’s presidential election amid the threat of rising coronavirus cases and lack of agreement on a U.S. stimulus plan. Spot gold climbed 0.5% to $1,877.23 an ounce, after posting the lowest close since Sept. 25 on Thursday. Silver rose 1.2%, platinum added 1.2% and palladium advanced 1%.