Happy Hump Day, I can see the weekend!

07/10/2020

On Tuesday the JSE slipped 0.59% to 54,203.83 points and the Top-40 0.63% at the close, bogged down by banks and general retailers which lost 1.40% and 2.16 respectively. Rand little changed at 16.63 per US$, while the Yield on 10 year govt rand bonds rose 6.9 bps to 9.556%. Wall Street’s main indices were all firmly in the red after the close on Tuesday after Donald Trump called for stimulus talks to be halted until after the election. The Dow closed 375.88 points, or 1.34%, lower on Tuesday, reversing gains recorded in the previous session. The markets continued to track talks on Capitol Hill and the health of the President. The S&P 500 lost 1.40% and the Nasdaq Composite saw out the session 1.57% weaker. Asian equities are mixed on Tuesday.

NEWS:
• COSATU, trade unions federation, Stages a One-day National Strike on Wednesday
• South Africa Central Bank To ‘Wait and See’ As Key Rate Seen Low
EARNINGS:
• Zeder Investments (ZED SJ)
DIVIDEND CALENDAR
• ACJ SJ, INTERIM @ 9cps; MST SJ, FINAL @ 26cps; SAC SJ, FINAL @ 9.53939cps
ECONOMIC DATA:
• 8am: Sept. Gross Reserves, est. $55.0b, prior $55.8b
• 8am: Sept. Net Reserves, est. $50.9b, prior $50.5b
• 11:30am: Sept. SACCI Business Confidence
CENTRAL BANK
• South African Reserve Bank will publish data on government bond holdings for September

EU/UK/US
European markets closed firmer on Tuesday with investors apparently relieved that the US President’s health had improved. The STX Europe 600 edged up mildly 0.25%s edging up, with Germany’s DAX ahead by 0.61%, while the London’s FTSE100 was up by 0.12%. 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. U.S. stock index futures flat-to-positive on Wednesday, with the Dow futures up 56 points, or 0.20%, with both the Nasdaq’s and S&P 500 futures little changed 0.13% and 0.16% respectively. The Democratic US presidential candidate Joe Biden’s widening lead in polls over Donald Trump makes some analysts believe that reduces the risk of post-election uncertainty.
Here are some key events coming up:
• On Wednesday, the minutes of the Sept. 15-16 meeting of the FOMC could be especially fruitful, 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.
ASIA
Asian markets edged higher on Wednesday, brushing off Wall Street’s weaker finish. Tencent 0.95% firmer, with Hong Kong’s 0.55% in the green. The Nikkei on the backfoot 0.23%, with Shanghai Composite 0.10 weaker. Australia’s ASX 200 1.25% stronger, with financial sector 2.17% edging higher.

COMMODITIES
Oil prices slipped on Wednesday after U.S. President dashed hopes for a fourth stimulus package to boost the coronavirus-hit . U.S. WTI oil futures fell 1.77%, to $39.95, while Brent crude futures fell by 1.45 to $42.04 a barrel.

Wishing You All A Good Day 😉