16/08/2021 Asian Stocks and Global Futures are lower as increased Delta Virus lockdowns and weaker than expected Chinese economic data has investors rushing out of risk on assets. Tencent is down 3.87 % as it leads the slide in online gaming stocks on renewed authority scrutiny. In the news this morning, TENCENT , Chinese regulators should strengthen vetting of online games and have “zero tolerance” toward those that distort history, state broadcaster China National Radio (CNR) said in commentary on its website. We will be in for a softer open with Tencent lower, Asia and global futeures softer and IG Top 40 Index down 320 points. Markets will also be keeping an eye on Afghanistan as the Taliban moves in on Kabul already seizing the Presidential palace and sending Pres Ghani into excile.
Locally the market ended the day flat with the All Share ending the week down 0.31%. NPN and Prosus held the local market back as NPN/PRX swap went ahead, the final number of PRX shares allocated to clients will be
made tomorrow. Public Enterprises Minister Pravin Gordhan is scheduled to brief the media at 1:15pm on reform processes under way at state-owned freight and logistics company Transnet.
• ABSA reported 1H Rev at R 41.2bln + 2.1% Y/Y, 1H Adj EPS R 10.18 and reinstates Div of R 3.10.
• NHM Trading Statement sees FY basic EPS rising more than four fold, sees basic EPS range between 327.5 – 337.5% Y/Y.
European stocks were higher Friday, closing out a tenth consecutive positive session as investors assessed global economic indicators and rising Covid-19 cases. The pan-European Stoxx 600 provisionally ended up by about 0.2%, having hit a fresh record high earlier in the session. Most sectors and major bourses were in positive territory. Adidas has sold Reebok for up to $2.5 billion to Authentic Brands, as the German sportswear giant opts to focus on its central brand. Adidas shares added 2.3% on Friday. FTSE +0.31%, DAX + 0.25%, CAC +0.20%.
In the US the Dow ended last week at 35,515.38, a record close, while the S&P 500 finished Friday at 4,468.00 to notch its own best-ever finish. The blue-chip Dow and the S&P 500 rounded out the week with muted gains of 0.8% and 0.7%, respectively, amid light summertime trading volumes. The tech-heavy Nasdaq Composite underperformed week, down just under 0.1%. The major stock indexes have for much of the last month ground to new records on the back of robust corporate earnings results. Eighty-seven percent of S&P 500 companies have reported positive earnings per share surprises for the second calendar quarter. If 87% is the final percentage, it will mark the highest percentage of S&P 500 companies reporting positive EPS surprises since FactSet began tracking this metric in 2008.
Asia-Pacific stocks slipped in Monday trade as investors reacted to the release of Chinese economic data for July. Retail sales in China rose 8.5% in July as compared with a year ago, according to official data released Monday. That was far lower than the 11.5% rise forecast by analysts in a Reuters poll. Meanwhile, industrial production grew 6.4% in July, also falling short of expectations for a 7.8% year-on-year increase for the month, according to the Reuters poll. MSCI’s broadest index of Asia-Pacific shares outside Japan declined 0.5%. In Aussie softer commodity prices are hitting the diversified miners in contrast the gold miners are trading in the green. BHP said it was in talks to sell its petroleum business to Australia’s top independent gas producer Woodside Petroleum in exchange for shares. South Korea’s markets are closed on Monday for a holiday.
Gold is trading near a one week high after last Mondays massive sell-off, Spot Gold is at $ 1774, Platinum $ 1016 and Palladium $ 2636.
Oil prices fell again after the International Energy Agency warned that demand growth for crude and its products had slowed sharply as surging COVID-19 cases worldwide forced governments to revive movement restrictions. Brent – 1.51% $ 69.53, WTI – 1.62% $ 67.33.
The Week Ahead :
• Monday : US – Empire State Manufacturing Index: anticipated to have slumped to 29.00 from 43.00. •Australia – RBA Meeting Minutes
• Tuesday: UK – Claimant Count Change: previous print came in at -114.8K. • US – Core Retail Sales: forecast to drop to 0.2% from 1.3%. • US – Retail Sales: likely fell to -0.2% from 0.6%. • US – Fed Chair Powel Speaks • New Zealand – RBNZ Interest Rate Decision: a hike to 0.50% from 0.25% is predicted.
• Wednesday: UK – CPI: expected to edge down to 2.3% from 2.5% YoY. •Eurozone – CPI: liable to have remained flat in July, at 2.2% YoY. •US – Building Permits: predicted to rise to 1.610M from 1.594M. The Fox. PMR 3 Silver Fox Research August 15, 2021 • Canada – Core CPI: likely to have ticked down to 0.1% from 0.3%. • US – Crude Oil Inventories: previous reading showed a drawdown of -0.447M. • US – FOMC Meeting Minutes • Australia – Employment Change: seen to plunge to -45.0K from 21.1K.
• Thursday: US – Initial Jobless Claims: expected to shift lower, to 360K from an upwardly revised 375K. • US – Philadelphia Fed Manufacturing Index: to rise to 25.0 from 21.9.
• Friday : UK – Retail Sales: forecast to remain flat at 0.5%. • Canada – Core Retail Sales: anticipated to surge to 4.4$ from -2.1%. • Australia – Retail Sales: previously printed at 0.1%.