Rally on Trump’s health and Stimulus hope

06/10/2020

The JSE All Share closed up 0.56% with MultiChoice soaring 9.6% as Canal+ takes a 6.5% equity stake. The deal gives Canal+ a foothold in Africa’s biggest satellite pay-TV group and demonstrates its confidence in the prospects of both MultiChoice and the African continent. Globally, with president Donald Trump’s departure from hospital easing concerns about his health, and increasing optimism that lawmakers will move closer to providing more stimulus, the US markets closed at their highs, the Dow up 1.68%, S&P up 1.80% and the Nasdaq up 2.32%. US Futures are mixed with the Dow future up 0.17% and the S&P and Nasdaq down 0.02% and 0.26% respectively. IG Markets Top40 is up 135 points.

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• Ninety One Is Said to Mull Offloading Africa Funds to Ethos.
• Balwin Soars After Launching Mega South African City Development.
• 4:30pm: South African Reserve Bank Monetary Policy Review

The FTSE is expected to open flat, just 4 points higher at 5,951, Germany’s DAX is seen 23 points higher at 12,858, France’s CAC 40 up 11 points at 4,882 and Italy’s FTSE MIB 64 points higher at 19,245, according to IG.

US stock futures are little changed after the market had its strongest session in several weeks. Futures tied to the Dow rose about 0.17% and contracts for the Nasdaq 100 slipped about 0.2%, while those for the S&P 500 were down 0.1%. The stability for futures followed a strong overnight session for the market as investors grew more optimistic about President Donald Trump’s health and the possibility of additional economic relief. The Nasdaq Composite led the way with 2.3% climb, while the S&P 500 and Dow jumped 1.8% and 1.7%, respectively. That marked the best performances for the Nasdaq and S&P 500 since Sept. 9 and the best day for the Dow since July 14.

Here are some key events coming up:

Today, Fed Chair Jerome Powell and ECB Chief Economist Philip Lane deliver keynote addresses at the NABE conference,
Wednesday, the minutes of the Sept. 15-16 meeting of the FOMC could be especially fruitful for Fed watchers, beginning with details of the debate on conditions necessary to trigger a rate increase
The U.S. Vice Presidential debate takes place in Salt Lake City on Wednesday
Though the final formal round of talks is over, the British government expects trade negotiations to continue up to the EU summit in mid-October.
• Markets in Asia push higher on the back of the strong US session.
• Australian Reserve Bank maintains current policy settings, the ASX 200 added 0.35%.
• Markets in China are closed for a holiday and the MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.75%.
Oil prices surged yesterday on the Trump news and hope of a stimulus package, Brent $ 41.43 and WTI $ 39.34.
Gold $ 1911, Plat $ 899, Palladium $ 2360.
Have a great day.