Stocks Drop As Tech Falls; Treasury Yields Edge Higher; Oil Rises After Terminal Attack

08/03/2021 Asian stocks fell on Monday with U.S. equity futures as higher Treasury yields tempered optimism over U.S $1.9 trillion pandemic relief plan and the growth outlook. Oil surged after Saudi Arabia said the world’s largest crude terminal was attacked. Brent crude futures surged above $70 a barrel on Monday for the first time since the Covid-19 pandemic began. Tech stocks struggled as China and Hong Kong led the regional retreat. Nasdaq 100 futures underperformed while European contracts rose. Microsoft Corp. shares will be closely watched after an attack on the company’s business email software threatened to blow up into a global cybersecurity crisis.

The JSE closed firm 0.78% to 68,271.19 points, on Friday, and the Top-40 0.87%. The gold mining index rose 3.98%, resources 2.36%, banks 1.45%, platinum miners 0.78% and financials 0.49%. Industrials lost 0.29%. The All share gained 3.23% for the week, the local bourse is now up nearly 15% so far in 2021.

NEWS:
• Absa Group Deputy CEO Dies After Battling Covid-19
• S. Africa’s Top Six Leaders to Meet Zuma This Week: Sunday Times
• Barclays Counts Benefits for EM of $500 Billion IMF Reserve Plan
• Woolworths Implementing Reform Plans, Kept at Overweight: Avior
• Kumba Iron Ore May Cut About 653 Jobs, Labor Union Says
• Anglo American, Sibanye Offer ‘Compelling Upside’ on PGMs: RBC
• South Africa to Miss Vaccination Target Due to Insuffcient Shots
• South Africa’s Treasury Sees Debt Ceiling as an Option
EQUITY PREVIEW:
• Growthpoint Sees DPS Down By at Least 15% vs Year-Earlier Period
• Citi Says Nedbank Still a Buy After Lender Flags Deeper EPS Drop
• Hyprop Cut to Hold at Renaissance Capital; PT 30 rand
EARNINGS:
• AVI Ltd. (AVI SJ)
• Massmart Holdings Ltd. (MSM SJ)

EU/UK/US
European shares slipped at the end of the week dragged down by Travel and Leisure names, amid mounting Covid-19 case counts in many countries, especially in Eastern Europe and Italy. The pan-European Stoxx 600 was down 0.78% at the close, while London’s FTSE 100 dipped 0.31% and the German Dax fell 0.97% to 13,920.68. The U.S. Department of Labor reported a 379,000 person increase in non-farm payrolls – consensus: 200,000.

Wall Street rallied hard following the release of a better-than-expected jobs reports. The Dow clocked in with a gain of 1.85%, alongside a 1.95% jump for the S&P 500, while the Nasdaq 1.55% to 12,920.15. Share price volatility for the S&P 500, the CBoE VIX index, fell sharply, retreating 13.69% to 24.66. U.S. index futures on the backfoot

ASIA
Asian markets mixed after U.S. stimulus bill, profit-taking. MSCI’s broadest index of Asia-Pacific shares outside Japan followed with a fall of 0.5%, while Chinese blue chips shed 3.3%.Japan’s benchmark Nikkei 225 slipped 0.42% in early trading. Australia’s S&P/ASX 200 XJO, gained 0.43%, while Kong’s Hang Seng HSI, fell 1.47. Beijing data released Saturday showed China’s exports surged 60.6% over a year earlier in the first two months of 2021, as factories reopened and global demand gradually recovered. The huge increase reflects a plunge in manufacturing and exports in early 2020 at the height of China’s coronavirus outbreaks.