02/03/2021 Asian stocks and US Futures are lower this morning as investors weighed the impact of the recent climb in bond yields as well as a Chinese official’s warning about asset bubbles. The dollar is firmer and Oil has dipped below $ 60 a barrel ahead of a key OPEC + meeting later this week. Shares in China and Hong Kong underperformed, though South Korea remained higher after reopening from a holiday. China is “very worried” about bubbles in overseas financial markets, China Banking and Insurance Regulatory Commission Chairman Guo Shuqing said at a briefing.
Locally the JSE regained all Friday’s losses and some, having its biggest up day in four months as global sentiment leapt once again on improved manufacturing data from a number of countries, including SA. Sentiment was also buoyed after the US passed its coronavirus stimulus bill in the House of Representatives on Saturday. The All Share closed up 2.12% at 67537. IG Markets have turned negative and trading down 177 points, Tencent is 0.5% lower.
Former Eskom chief executive officer Brian Molefe appears before the Judicial Commission of Inquiry into allegations of state capture and corruption led by Deputy Chief Justice Raymond Zondo, this should be entertaining.
• Steinhoff in Talks With Insurers to Help Settle Legal Claims.
• South Africa Zuma’s Contempt Case to Be Heard March 25.
• S. Africa Factory Mood Improves More Than Expected in February.
• Unions will ask for CPI plus 4% in 2021 public sector wage talks.
• Bidvest still on the hunt for acquisitions as Covid-19 boosts hygiene demand
• CSB reports HEPS up 102% and declares dividend of 724 c.
The pan-European Stoxx 600 ended the session up by 1.8%, with travel and leisure shares climbing 3.2% to lead gains as all sectors and major bourses entered positive territory. The sharp rise for European markets comes as Treasury yields continue to retreat from their highs from last week. Equities had been under pressure over the last few weeks as rising yields made equities look less attractive to investors. FTSE +1.62%, CAC +1.57%, DAX + 1.64%.
U.S. equities began March on a strong note on Monday with the S&P 500 up 2.38%, the Dow Jones Industrial Average adding 1.95% and the tech-heavy Nasdaq Composite jumping just over 3% after shedding 4.9% last week. All 11 S&P sectors finished in the green and the S&P 500 posted its best day since June 5. Both the Dow and the Nasdaq clinched their best trading day since November. Economically sensitive, cyclical sectors like energy and financials continued to outperform the broader market amid optimism about vaccines and economic resurgence. Meanwhile, a pause in the market for U.S. debt allowed high-growth tech names to recoup a sizable portion of their recent losses. The VIX is 16.46% lower.
Stocks in Asia-Pacific traded mixed earlier following strong gains overnight for shares on Wall Street. South Korea’s Kospi jumped 1.4%, following its return from a Monday holiday. Shares in mainland China were lower, with the Shanghai composite down 0.99% while the Shenzhen component shed 0.556%. Hong Kong’s Hang Seng index dipped 0.91%. The ASX 200 was flat aftert the Reserve Bank of Australia (RBA) announced its decision to maintain its current policy settings, including leaving its cash rate at 0.1%.
Oil prices fell more than 1% again this morning, extending losses that began last week, as investors unwound long positions on concern that OPEC may agree to increase global supply in a meeting this week and Chinese demand may be slipping. Brent is 1.35% lower at $ 62.82 and WTI 1.35% lower dipping below $ 60 a barrel to 59.82.
Precious metals are lower this morning, Gold down 0.52% at 1716, Platinum still below $ 1200 at 1176 and Palladium down 0.49% at 2349.
• U.S Federal Reserve Beige Book is due Wednesday.
• OPEC+ meeting Thursday.
• U.S factory orders, initial jobless claims and durable goods orders ,Thursday.
• U.S Unemployment numbers Friday.
Have a good day.