Asian Stocks Advance Most in a Week

11/08/2020 Asian stocks rose the most, in a week, on Tuesday after a drop in coronavirus cases in some U.S. states – global cases topped 20 million. Japanese and Hong Kong equities rose about 2%, with Tencent 3.2% firmer. S&P 500 futures climbed to be on course to approach its all-time high from February. The local market was closed on Monday, observing the celebration of Women’s day. JSE/All-share fell 1.56% to 56,757.73 points and the Top-40 1.72% as the heavyweight Naspers closed 4.18% lower, while Prosus fell 3.82%. This comes after US President an executive order to ban US companies from doing business with TikTok-owner ByteDance and Tencent. Rand 0.34% firmer this morning at 17.6230 on the dollar, down 20.58% year-to-date. Yield on 10 year-govt rand bonds fell 5.2 bps to 9.233%. IG markets are in positive territories this morning, with the Top-40 futures 267 points up.
• South African inquiry into State Corruption hears testimony from ex-Finance Minister Des van Rooyen.
• Russia explosion: Huge blast rips through gas station in Volgograd, injuring at least 13
• Lebanese Government Resigns as Public Anger Over Blast Mounts
• SASOL SEES FY EPS AND HEPS SWINGING INTO LOSSES
• SASOL SEES FY LOSS/SHR B/W 146.75 RAND & 148.15 RAND
• MTN Considers Sale of Stake in Iran Ride-Hailing App Snapp
• African Rainbow Minerals Cut to Hold at HSBC; PT 180 rand
• ECONOMIC DATA: 1pm: June Manufacturing Prod SA MoM, est. 30%; 1pm: June Manufacturing Prod NSA YoY, est. -25.75%
• SOUTH AFRICA TOTAL CORONAVIRUS CASES AT 563,598 AUG. 10, 213 ADDITIONAL CORONAVIRUS DEATHS

EU/UK
European stock markets remained green throughout the session on Monday even after the news that China was imposing sanctions on 11 Americans, including senators Ted Cruz and Marco Rubio, in retaliation for similar measures announced by the US on Friday. Shares in energy giants BP, Royal Dutch Shell and Total rose by 2.84%, 1.31% and 1.36%, respectively, on firmer crude oil prices after Saudi Aramco raised optimism about Asian demand. At the close: pan-European Stoxx 600 was 0.23% higher, as Germany’s DAX added 0.1%, and the CAC 40 in Paris advanced 0.41%, while the FTSE100 firmed up 0.31%. We looking towards a positive start to the opening with FTSE up 41 points , as indicated by IG futures, and the DAX 100 points at the moment.

US
Wall Street markets closed mixed on Monday after the President’s orders to carry on the distribution of expanded benefits. The executive order will see unemployment payments reduced from $600 a week to $400 and also continue the deferment of student loan payments through 2020. The Dow Jones closed 357.96 points higher, or 1.30%; alongside the S&P 500 gaining 0.27%, while the Nasdaq Composite was 0.39% lower. US stock index futures firmer on Tuesday morning: the Dow futures up 94 points, or 0.34%, with both the S&P 500 and Nasdaq up 9 points and 42 points respectively.
Here are some key events coming up:
• Earnings include SoftBank, Telstra, Deutsche Telekom, Carlsberg, Tencent and JD.com.
• ECONOMIC DATA: 14:30pm PPI Ex Food, Energy, Trade YoY
• U.S. retail sales are expected Friday, with a smaller increase forecast for July than in the prior two months.
ASIA
Asian stock markets rose on Tuesday on relief that another round of Sino-U.S. sparring appears not to have spilled over into trade. The MSCI’s broadest index of Asia-Pacific shares outside Japan was last up 0.98%. Japan’s Nikkei returned from a holiday with a 1.86% gain led by healthcare and industrial stocks and the Hang Seng bounced 2.52%. Markets are awaiting a meeting between top U.S. and Chinese trade officials on Saturday to review the first six months of the Phase 1 trade deal.

COMMODITIES
Oil pushed higher following the biggest daily advance in a week as Saudi Aramco’s upbeat assessment of the crude market and signs the spread of the coronavirus in the U.S. is decelerating aided sentiment.
Futures in New York rose past $42 – WTI currently up 0.72% at $42.26 – a barrel after climbing almost 2% on Monday. Aramco pressed ahead with a plan to pay $75 billion in dividends this year and said that Asian crude demand was almost back to pre-virus levels. The risk-on sentiment weighed on gold – currently on the backfoot 0.61% at $2015.33.

Wishing you all a blessed week ahead 😉