04/05/2021 U.S. equity futures have retreated and Asian stocks are mixed following weakness among the technology giants on Wall Street. The dollar has rallied and Gold has eased after yesterday’s strong rally. Mainland China and Japan remain closed for holidays.
Locally, the JSE closed weaker amid disappointing local economic data, while rising Covid-19 cases in some countries, particularly India, the third-largest consumer of oil, weighed on sentiment. The JSE all share extended its Friday losses, the all share lost 0.45%% and the top 40 0.42%, with most major indices down on the day. SA Inc names the big losers on the day with banks, financials and retailers hardest hit. Gold names were top of the gainers list with ANG and GFI up 3.41 and 2.56 percent respectively.
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European stocks are expected to open in flat-to-lower this morning, following similarly mixed sentiment elsewhere.London’s FTSE is seen opening 3 points lower at 6973 Germany’s DAX down 34 points at 15202 France’s CAC 40 down 18 points at 6290 and Italy’s FTSE MIB 41 points lower at 24379, according to IG. The broadly negative start to the trading session expected for Europe follows a similar pattern in the U.S. and Asia Pacific, where stocks were mixed in Tuesday morning trade with major markets in Japan and China still closed for holidays.
US stock futures slipped in early morning trade after a strong start to May as investors piled into shares that would benefit the most from an economic reopening. The move in futures followed solid gains for the Dow during regular trading hours. The 30-stock benchmark rallied more than 200 points, while the S&P 500 inched up 0.3%. Retail stocks led the market advance with Gap and Macy’s rallying more than 7%. The Dow and the S&P 500 just posted their consecutive months of gains, bringing their 2021 gains to more than 11% each. The Nasdaq lost 0.48% as Tesla and Amazon weighed on the index.
Markets in Asia are mixed with the Hang Seng and ASX 200 up, the Reserve Bank of Australia on Tuesday announced its decision to maintain its current policy settings, including keeping the cash rate at 0.1%. Meanwhile, official data released Tuesday showed Australia’s trade surplus narrowing in March. The seasonally adjusted trade surplus for March came in at 5.574 billion Australian dollars (about $4.31 billion), according to the Australian Bureau of Statistics. That was a more than 2 billion Australian dollar decline from February. Economists had forecast a trade surplus of 8 billion Australian dollars, according to a Reuters poll. Markets in China, Japan and Thailand are closed on Tuesday for holidays.
Gold prices edged lower on Tuesday, after hitting a more than two-month high in the previous session, as a stronger dollar and optimistic comments from U.S. Federal Reserve Chairman Jerome Powell on the economy weighed on the metal’s safe-haven appeal. Gols spot touched $ 1797 in yesterdays trade leading the NTSE Gold Bugs index to a 4.76% gain. Gold is trading down 0.31% at $ 1787, Platinum is up 0.28% at $ 1235 and Palladium + 0.08% at $ 2976.
Oil prices are flat this morning with Brent at $ 67.55 and WTI at $ 64.50.