South African Markets ended the second quarter of the Pandemic hit 2020 with its biggest quarterly gain since 2001, Gold miners, Naspers, Prosus and Sasol among the best performers. The JSE AllShare end the day up 0.4%, ending the quarter up 22% since the start of April. We should see a firmer start to the new quarter after a positive session in the US, Gold edging higher and a slightly weaker Rand.
South Africa’s National Treasury will use the medium-term budget policy statement in October to outline how it plans to free up 250 billion rand ($14.4 billion) to narrow the fiscal gap from next year.
• South African Lawmakers Reestablish Land-Reform Committee
• South Africa’s Ruling Party Fails to Pay Staff Salaries
• 1pm: Ruling ANC party holds briefing after meeting of national executive committee
• Inquiry into state corruption resumes
• 11am: June Absa Manufacturing PMI, est. 49.8, prior 50.2
• June Naamsa Vehicle Sales YoY, est. -50.0%, prior -68.0%
European stocks are expected to open in flat to positive territory after getting a boost from better-than-expected Chinese factory activity in June. London’s FTSE is seen opening 5 points lower at 6,179 while Germany’s DAX is expected to open 22 points higher at 12,354, France’s CAC 40 is seen 9 points higher at 4,951 and Italy’s FTSE MIB is seen 72 points higher at 19,327, according to IG.
In the US the Dow rose 217 points, the S&P 47 points and the Nasdaq 184 points this as the market notched its best quarter in decades as it snapped back from the historic sell-off triggered by the coronavirus. The Dow gained 17.8% in the second quarter, posting its best quarter since 1987, while the S&P 500 finished the period with a near 20% gain, its best since 1998. The tech-heavy Nasdaq soared 30.6% for the quarter, the most since 1999.
Recent spikes in coronavirus cases in some states are keeping investors on edge. White House health advisor Dr. Anthony Fauci warned yesterday that if the outbreak continues at its current pace, daily new cases could surpass 100,000 new infections per day. So far, more than 12 states have now paused or rolled back their reopenings as cases in the U.S. jumped 40% over the past week to an average of about 39,750 on Monday
Markets in Asia mostly edged higher as a private survey showed China’s factory activity for June was better than expected. The Caixin/Markit manufacturing Purchasing Manager’s Index for June came in at 51.2. That was above expectations of a reading of 50.5 by analysts in a Reuters poll. Hong Kong is closed for a holiday, ASX 200 + 0.62%, Shanghai Comp + 0.96% and the Nikkei softer down – 1.07%.
On the Commodity front, Oil rises as an industry report showed crude inventories in the United States fell much more than expected. Crude inventories dropped by 8.2 million barrels to 537 million barrels, against analysts’ forecasts for a draw of 710,000 barrels. Brent $ 41.65, WTI $ 39.70.
Gold edges towards an eight year high as concerns of the a virus surge mount, Golds trading at $ 1784, just $ 6 shy of the 2012 level of $ 1790.