Nasdaq closes at yet another record

07/07/2021 The Nasdaq closed at yet another record high, bucking the trend over-night as the DOW and S&P both closed lower but well off their lows. Oil has steadied after dropping toward $73 a barrel in the fallout from the OPEC+ crisis, which has stymied efforts to raise production and buffeted prices. Asian markets are mostly lower with Aussie pushing higher thanks to gold, healthcare and tech names. World markets will be looking to Jerome Powell and the FED for further guidance in the FOMC minutes later today.

Locally the All Share closed near its lows as the local market sold off after the US open. The All Share closed down 0.48% at 65849 after trading in the green all morning. Sasol lost 5.16 % from the morning session highs to close down 2.6 % after the Oil price sold off on OPEC+ hopes that the taps might be turned back on. Brent Crude is up about 44% year to date and we could see SA motorists paying record prices for petrol from midnight tonight. We should see the local market open lower with Tencent down 2.77% and IG Markets indicating the Top 40 down 109 points.

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ECONOMIC DATA:

• 8am: June Gross Reserves, est. $53.3b, prior $54.1b
• 8am: June Net Reserves, est. $51.4b, prior $52.2b
• 2pm: S&P virtual conference on South African economy

Here are some events to come this week:

• FOMC minutes today 18h00 GMT.
• The Group of 20 finance ministers and central bankers meet in Venice on Friday
• China PPI and CPI data released on Friday

European Markets are set to open slightly higher across the region after the US rallied off its intra-day lows. Volumes are expected to be muted once again as investors wait for the FED Minutes later today. On the data front, Russia releases inflation data for June and France releases trade data for May.
In the US the Dow fell 208 points but well off its morning session lows. The S&P 500 ended the day down by 0.2%. The Nasdaq Composite rose nearly 0.2%. The tech-heavy index rose to a fresh all-time high. Futures this morning are mixed with the DOW and S&P small down and the Nasdaq marginally up. Investors will be listening for more clues on the direction of the Federal Reserve’s monetary policy when it releases its latest meeting minutes this afternoon, which could be a catalyst for a move in both bonds and stocks. The Fed’s minutes are expected to be dovish with the central bank looking for progress in the labor market and not worried that recent inflation will become a persistent trend.
Shares in Asia-Pacific were mixed in today’s trade following losses on Wall Street with the S&P 500 ending its seven-day winning streak. Mainland China and Aussie trade up 0.65 and 0.9 percent respectively while the Nikkei trades down 1 % and the Hang Seng down 0.84% with Tencent down 2.77%. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.34%.
Oil prices steadied today after a steep drop in the previous session, following the cancellation of talks among OPEC+ producers that raised the prospect that the world’s major crude exporters will turn on the taps to gain market share. Brent + 0.3 %, $ 74.74, WTI + 0.38%, $ 73.64.
Gold prices have bounced back above $ 1800 an ounce this morning despite a firmer Dollar but all will be looking to FED later. Gold is up 0.23% at $ 1801, Platinum flat at $ 1095 and Palladium up 0.11% at $ 2800.