Naspers and miners drive the JSE to record high

13/01/2022 Tech heavyweights Naspers and Prosus led the gains on the JSE yesterday, and European markets climbed as investors welcomed comments by the US Federal Reserve chair Jerome Powell. The JSE all share closed at a record high, gaining the most in more than a month, with miners and Sasol also pushing the index higher.
Stocks in Asia are mixed this morning after the U.S. inflation print intensified calls for interest-rate increases as soon as March. Shares fluctuated in Hong Kong where a gauge of Chinese technology stocks fell after its biggest jump in three months. Japan declined. Chinese developers retreated as some of the property sector’s more indebted firms face a wave of key payments this week. U.S. futures turned red after the S&P 500 and the Nasdaq 100 ended the session higher. The dollar fell to a two-month low after the data number.
Locally the JSE Top 40 closed up 2.59% as SOL, NPN and PRX led the gainers, closing up 9.30, 6.89 and 6.49 percent respectively. We should be in for a softer open as Tencent trades down 1.25%, US futures are a tad lower and IG Top 40 is 225 points lower.
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ECONOMIC DATA:
• 13:00: Nov. Electricity Production YoY, prior -3.4%
• 13:00: Nov. Electricity Consumption YoY, prior -3.6%
The pan-European Stoxx 600 closed 0.7% higher, with basic resources climbing 3.2% to lead gains while health care stocks dropped 0.7%. FTSE + .081%, DAX + 0.43%, CAC +0.75%.
Overnight in the US, the major averages rose despite the hefty print from the CPI inflation report. The December consumer price index, increased 7%. On a monthly basis, CPI increased 0.5%. Economists expected the consumer price index to rise 0.4% in December, and 7% on a year-over-year basis, according to Dow Jones. On the markets, the Dow jumped about 38 points and the S&P 500 added 0.3%. The Nasdaq rose for the third straight day, climbing 0.2%. The annual move was the fastest increase since June 1982. On the data front, initial jobless claims for the week ending Jan. 8 will be released at 8:30 a.m. Economists polled by Dow Jones forecast 200,000 people filed for unemployment, down from the previous week’s 207,000. Fourth quarter earnings season kicks off this week with several major banks reporting on Friday before the bell. For the week, the S&P 500 and Nasdaq are up 1.1% and 1.7%, respectively.
Asia-Pacific markets are mixed as Wall Street saw gains despite a red-hot inflation report that set market expectations for rate hikes. Meanwhile, Covid worries also came into focus as the World Health Organization warned that omicron cases are “off the charts.” Japan, Mainland China and South Korea are lower but Hong Kong and Aussie are higher. The ASX 200 is up 0.48% with BHP and RIO playing catch-up, up 3.92 and 4.13 percent respectively. The Aussie mining index is up 2.82%.
Gold holds onto yesterday’s gains as data showing U.S. inflation was within expectations dented the dollar and prompted buying from investors who seemed to have priced in the Federal Reserve’s likely interest rate hike trajectory. Gold Spot $ 1827, Plat $ 980.22, Palladium $ 1910.48.
Oil has dipped slightly this morning trimming big gains from the previous two sessions, amid uncertainty over near-term demand as cases of the highly contagious omicron variant of the coronavirus surge around the globe. Brent – 0.31% $ 84.41, WTI – 0.30% $ 82.40.