15/06/2021 Asian stocks trade mixed today after their U.S. peers closed at a record and a bond rally stalled ahead of a key Federal Reserve meeting. Commodities are softer led lower by copper. RBC cuts AGL saying its facing headwinds that could cause its shares to consolidate for the first time in a while. They downgrade the miner to sector perform from outperform, cutting its PT to 3,400p from 4,100p. Anglo American now has 14 buy ratings, 8 holds and 3 sells among analysts tracked by Bloomberg, with an average PT of 3,497.75p compared to closing price on Monday of 3,112.50p
The stock is up 29% YTD vs 21% gain for Stoxx 600 Basic Resources index’.
Locally the All Share closed up 0.32% in light trade ( R 14.2 bln ) led by Sasol after they announced the successful completion of all the Suspensive Conditions Related to the Divestment of the ASUs, the stock closed up 3.29% at R 240.00 along way from last March’s lows of the lower R 20’s. SA Inc had a good day with retailers ending the day up 1.96%. We should see a slightly higher open this morning as Tencent has turned positive and up 0.25%, the Rand is unchanged and IG Markets are up 83 points.
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Markets in Europe look to open in the green as investors await the start of the U.S. Federal Reserve’s latest monetary policy meeting. London’s FTSE is seen opening 13 points higher, the DAX 47 points higher, France’s CAC 40 up 17 points and the FTSE MIB 34 points higher, according to IG. Data releases in Europe include U.K. unemployment figures for April, final inflation data for Germany, Italy and France in May and euro zone trade balance data for April. There are no major earnings releases.
Overnight in the US the Nasdaq and S&P 500 registered new record highs ahead of the Federal Reserve’s latest monetary policy meeting. The S&P 500 gained 0.2% to close at a new record of 4255, Still, three stocks fell for every one that rose. The Dow fell 85 points while the Nasdaq was the relative outperformer, gaining 0.8% to close at an all-time high of 14174. The 10-year Treasury yield pulled back under 1.5%, while the dollar was steady. Bitcoin rose to $40,000 yesterday after Tesla CEO Elon Musk said Sunday that the company will resume bitcoin transactions once it confirms there is reasonable clean energy usage by miners. PPI at 14:30 today is expected to rise 0.5% in May, according to Dow Jones estimates. The core PPI which excludes volatile items like foods, energy and trade services is also estimated to increase 0.5%.
Shares in Asia-Pacific were mixed in afternoon trade, with Australian stocks leading gains regionally. The S&P/ASX 200 jumped 1.08% in Tuesday trade. Members of the Reserve Bank of Australia’s board agreed it would be “premature” to consider ceasing the bond purchase program, minutes from the central bank’s monetary policy meeting for June showed. The Nikkei is up 1.05% while the Hang Seng is 0.69% lower with Tencent up 0.34%.
Gold is slightly better this morning after falling to a near one-month low in the previous session, the metal lost nearly 3 percent from early morning Friday levels of $ 1903 to trade as low as $ 1845 yesterday. Gold is trading up 0.06% at $ 1867, Platinum + 0.11% $ 1168 and Palladium + 0.26% $ 2762.
Oil prices are firmer with Brent gaining for a fourth consecutive session, as the prospect of extra supply coming to the market soon from Iran faded with talks dragging on over the United States rejoining a nuclear agreement with Tehran. Brent + 0.37% $ 73.14, WTI + 0.34% $ 71.10.
• An EU-U.S. summit takes place in Brussels, today.
• Data on U.S. industrial production, producer prices and retail sales come Tuesday
• The Federal Open Market Committee rate decision comes on Wednesday, with a news conference from Jerome Powell after
• U.S. President Joe Biden and Russia’s Vladimir Putin meet Wednesday in Geneva
• U.S. Treasury Secretary Janet Yellen testifies before a House panel Thursday on the federal budget
• Rate decisions come from Switzerland and Norway on Thursday
• The Bank of Japan’s monetary policy decision is on Friday.