JSE Closed Weaker On Thursday As Global Coronavirus Cases Topped 12-million

10/07/2020 JSE/All-Share gave up 0.15% to 55,787.9 points yesterday after reaching its best levels in more than four months earlier in the day and the Top-40 index closed flat 0.4%. The local currency firmed for a second day on as concerns over the rising number of Covid-19 cases in the US, more than 3 million, put pressure on the dollar. Gold remains at multiyear highs as investors seek refuge in the yellow metal. Two index heavyweights, Naspers and Prosus, continue to drive the local bourse higher while shares in locally focused companies reflect concerns about SA’s dire economic situation. Banking and retail stocks have both dropped by about 39% this year 2020.

Gold -0.35% @$ 1797.13, Platinum -0.73% @ $831.53, Brent -1.32% @ $41.79, WTI -1.64% @ $38.97

• Eskom warns of a “high probability” of power cuts through the weekend as a cold front increases electricity demand, contradicting its previously optimistic outlook on outages.
• (MTM SJ): S. African Insurers Told They Can’t Use Lockdown to Block Claims
• Land Bank Default Ups Stakes for South African Central Bank Unit
• (SAP SJ): Sappi to Close Paper Machine in Germany, Energy Complex in U.S.
• S. Africa Factory Output Fell Nearly 50% During Strict Lockdown
• 9am: COSATU presents response to supplementary budget to Parliament’s appropriation committees
• 10am: Judicial Commission of Inquiry into allegations of state capture continues in Johannesburg

Rand up 0.1% to 16.9187 per US$, while the Yield on 10 year govt rand bonds fell 3.7 bps to 9.67%. The IG futures indicate 394 start on the backfoot this morning as we likely to follow Asian markets at the opening.

European equity markets finished weaker on Thursday, with Rolls-Royce tumbling 7.45% as it said its free cash outflow was £3bn in the first half of 2020 pacing the decline after a first-half trading update, while a firmer pound also weighed on stocks. The FTSE 100 ended the session down 1.73%, with Sterling stronger against both of its major trading pairs; gaining 0.06% on the dollar to $1.2618 and advancing 0.37% on the euro to €1.1171. The German Dax closed flat -0.04%, while the CAC-40 retreated -1.21%.

Wall Street markets closed mixed: Nasdaq Composite gained 0.53%, its seventh positive session in eight and another record close while the Dow fell 361 points, or 1.38%, its second negative session in three. The S&P500 saw the session out -0.56% on the day. Asian shares and U.S. stock futures fell on Friday as record-breaking new coronavirus cases in several U.S. states stoked concerns that new lockdowns could derail an economic recovery. U.S. government data showed 1.3 million workers filed for unemployment claims last week. Investors are worried that worsening infection levels in the populous U.S. states of Florida, Texas and California could derail a recovery. Some states are rolling back their re-openings, while others are ordering people arriving from hotspots to quarantine. Dow futures pointing downwards -209 points currently, while the S&P500 are -18 points in the red.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.76%. Australian stocks dropped 0.77%, while Japanese stocks declined by 0.71%.
Shares in China fell 1.32%, the first decline in more than a week, as investors booked profits on a surge in equities to a five-year high. Hong Kong on the backfoot 2.12%