09/04/2021 Global stocks traded around record levels Friday after a Wall Street rally on Federal Reserve Chairman Jerome Powell’s assurance that the central bank can reinvigorate the economy without stoking painful inflation. The S&P 500 notched up yet another record high despite low volumes across the US markets.
Locally the All Share lost 0.16 of a percent after a really positive start, the index closed 923 points off the early session high. Manufacturing production contracted an annual 2.1% in February, following a revised 4.2% decline the previous month, worse than expected and the banking index was the worse performer losing 1.93%.
The South African Reserve Bank releases reserves data for March at 8am. Gross reserves are expected to decline to $53.1 billion, from $53.8 billion in February.
• S. Africa Expects to Receive 1 Million J&J Vaccines April 22-24.
• South Africa Feb. Manufacturing Falls 2.1% Y/y, Est. -0.3%.Prosus Ready for Deals, Buyback After Boosting Firepower: Citi.
• Transaction Capital Cut to Hold at Investec; PT 31.90 rand.
• Nedbank CEO Brown Acquires 1.92 Million Rand Worth of Shares.
• Pick n Pay Sees FY Diluted HEPS Falling as Much as 25%
• EXX sells equity interest in Exxaro Coal Central Proprietary
• 8am: March Net Reserves, est. $51b, prior $51.6b
• 8am: March Gross Reserves, est. $53.1b, prior $53.8b
European stocks closed higher on Thursday, tracking gains overseas following dovish comments from the U.S. Federal Reserve. The pan-European Stoxx 600 gained 0.6% by the end of the session, having earlier hitting record highs. Food and beverage shares added 1.6% to lead the gains as most sectors and major bourses finished in positive territory.
The major averages rose on Thursday, bolstered by gains in technology stocks. The Dow gained 57 points, helped by a near-2% gain in Apple’s stock. The S&P 500 climbed 0.42% and closed at a record high for the second day in a row. The Nasdaq was the relative outperformer, gaining more than 1% as Amazon, Netflix, Microsoft and Google-parent Alphabet all closed higher. Investors largely shrugged off an unexpected jump in jobless claims from last week. The Labor Department reported first-time claims for the week ended April 3 totalled 744,000, well above the expectation for 694,000 from economists surveyed by Dow Jones. The major averages are set to end the week higher. The Dow is up nearly 1.6% this week. The S&P 500 has gained more than 1.9% since Monday. The Nasdaq Composite has rallied more than 2.5% heading into Friday.
Shares in Asia-Pacific were mostly lower in Friday trade after the S&P 500 on Wall Street cruised to yet another record closing high overnight. Shares of Tencent-backed financial technology firm Linklogis surged more than 9% from their issue price by the afternoon in its Hong Kong debut on Friday. Shares of Chinese tech juggernaut Tencent are 0.40% lower. Mainland Chinese stocks declined as the Shanghai composite shed 0.74% and the Shenzhen component slipped 1.097%. The moves came as official data released Friday showed Chinese consumer and producer inflation rising in March as compared with a year ago. The consumer price index for March rose 0.4% from last year, more than expectations for a 0.3% increase in a Reuters poll. The producer price index for March jumped 4.4% from last year, against expectations in a Reuters poll for a 3.5% rise. The Nikkei bucked the trend trading up 0.34%, ASX 200 -0.05% and the Hang Seng down – 1.24%.
Gold set for first weekly gain in three on weakening dollar despite trading lower. Gold on Friday held near a more than one-month peak scaled in the previous session, with bullion set for a weekly gain of over 1%, as a weakness in the dollar and Treasury yields offered support along with a surprise jump in U.S. jobless claims. Gold is trading at $ 1750, Palladium is down 0.10% to $2629 and Platinum is trading 1.09% lower at $1219 but is still set for its second straight weekly gain.
Oil has drifted lower despite the weaker dollar as investors weighed rising supplies and the impact on fuel demand from the COVID-19 pandemic. Brent – 0.17% $ 63.09, WTI flat $ 59.59.