U.S. Initial Jobless Claims Rise to Highest Since Mid-November, CPI at 7.0%

14/01/2021 Asian stocks declined Friday after a slew of Federal Reserve officials signalled they will combat inflation aggressively and the Nasdaq 100 fell to its lowest level since October. Equities tumbled across the region, with indexes in Japan and Korea down more than 1%. U.S. futures fluctuated after American stocks tumbled Thursday, led by technology companies, which are seen as most sensitive to higher rates. Reporting season gets underway today with JPMorgan, Citigroup and Wells Fargo releasing results before the market opens.
Locally, the JSE was little changed but still hovering around the fresh record high, while global markets were mixed as investors digested the US consumer price numbers. The All Share closed up 0.41% with the retail index leading the way, closing up 1.80%. we in for a lower open as Wall St was under pressure, Asia softer, Tencent down 1.98% and IG Top 40 index down 531 points.
MEDIA SUMMARIES:
• Bus Insider.za: Flood damage results in massive maize losses in the Free State and KwaZulu-Natal.
• Business Day.za: NPA and Hawks to set up task team to tackle cases raised by Zondo.
• Business Day.za: Tharisa reports strong start to the year as it eyes improvement in PGM market.
• Bus Insider.za: Govt’s R1.1 billion gift to taxis was going to force them to formalize. Now, not so much.
• Moneyweb: Business grouping sides with Eskom against ‘municipal monopoly’.
• Business Day.za: Steinhoff: with lawsuits out of way how much value does share have?.
• Financial Mail: Ascendis’s clean (sort of) slate .Financial Mail: Why SA is bracing for 2% growth this year
European stocks closed lower yesterday as global markets faltered following the latest U.S. inflation reading showing consumer prices rose once again in December. The pan-European Stoxx 600 hovered around the flat-line during afternoon trade but closed lower by 0.2%. Household goods dropped 1.2% while autos gained 1.6%. Futures are softer across the region.
Overnight in the US, the major averages slid as the Dow and S&P 500 fell 0.48% and 1.42%, respectively, registering the first down day in three. At one point the Dow had been up more than 200 points. The Nasdaq was the relative underperformer, shedding 2.51% and snapping a three-day winning streak as technology stocks came under pressure. Microsoft declined more than 4%. A slew of economic data will also be released later today, including December retail sales numbers. Economists are expecting the print to show a decline of 0.1%, according to estimates compiled by Dow Jones. During November sales rose by 0.3%, slower than the 0.9% economists had been expecting. Industrial production numbers will also be reported, with the Street expecting a 0.2% rise. Consumer sentiment figures will be released later in the day. Companies have started posting quarterly updates, but reporting season will get into full swing on Friday when JPMorgan, Citigroup and Wells Fargo release results before the market opens.
Gold prices are poised for their best weekly gain since last November, as investors await economic data that could provide clarity about U.S. Federal Reserve’s tapering policy, while a weaker dollar and Treasury yields supported bullion. The safe-haven metal climbed 1.6% so far this week. Spot Gold + 0.26% $ 1827.
Oil prices eased slightly for a second session today on growing concerns that Washington may soon act to cool prices, while movement controls in China to rein in a Covid-19 outbreak weighed on fuel demand. China, the No. 2 oil consumer globally, has suspended some international flights and stepped up efforts to rein in a virus outbreak at Tianjin while the highly transmissible omicron variant has spread to the northeastern city of Dalian. Brent $ 84.48, WIT $ 81.94