Markets looks set for Monday jump following Wall Street’s best week since November

08/02/2021 The JSE is set to open higher with investors positive about more US stimulus and brushing off downbeat jobs numbers and news that China is gearing up again to target tech giants with antimonopoly laws. World markets remain focused on the prospect of the US stimulus deal, with Democrats moving last week to pass a bill through a simple majority. A quick catch up. The JSE closed near the record high it reached on January 25, tracking firmer global markets as progress on stimulus, vaccines and positive global economic data lifted sentiment.
European stocks are expected to open higher with markets tracking positive sentiment in Asia and the U.S. London’s FTSE is seen opening 40 points higher at 6,534, Germany’s DAX up 112 points at 14,171, France’s CAC 40 42 points higher at 5,695 and Italy’s FTSE MIB up 182 points at 23,272, according to IG. European market sentiment looks set to be buoyed by positive market action elsewhere, although earnings and coronavirus developments remain in focus. News that the more contagious South Africa variant of the coronavirus continues to spread throughout the U.S. is expected to rattle markets. On Friday, Virginia health officials reported the state’s first case of the strain first identified in South Africa.
Yesterday, South Africa halted distribution of AstraZeneca’s vaccine after a new study found it offers “minimal protection” against mild disease caused by the variant first discovered there. Or, has it all been just Stolen ?
The S&P 500 closed at a record high on Friday and posted its fifth straight positive session for the first time since August. The Dow is also on its longest daily winning streak since August, while the Nasdaq Composite registered its fourth positive session in five on Friday. The tech-heavy index also closed at a record high. All three major averages finished the week in the green, with each posting its best week since November as fears of the short-squeeze in a handful of stocks leading to broader market contagion subsided. The Russell 2000, meanwhile, is on its longest daily winning streak since May, and gained 7.7% last week for its best weekly performance since June.
Markets in Asia are higher, as investors monitored shares of China’s tech giants following the release of new anti-monopoly guidelines over the weekend. Chinese tech shares rose despite concerns that Beijing was tightening restrictions on the country’s tech giants. By Monday afternoon in Hong Kong, shares of Chinese tech giants listed in the city were mostly higher: Tencent advanced 0.82% JD.com jumped 1.14% while Meituan gained 1.54%. Alibaba, on the other hand, dipped 0.16%. China’s State Administration for Market Regulation released a new set of rules that will likely put pressure on leading internet services in the country such as Alibaba’s Taobao or Tencent’s WeChat Pay, according to Reuters.
The Gold price is higher this morningy, as weaker-than-expected U.S. jobs data re-ignited concerns over a recovery in the world’s largest economy, pressuring the dollar and boosting bullion.