05/08/2020 The JSE was 0.75% higher as a recovery in some SA Inc stocks helped the local bourse, BVT bounced 6.19% to lead the gainers, Rand hedges were once again the driving force as the ZAR slipped for the seventh day in a row. IG Markets are up 318 points.
Gold’s scorching rally gathered more force, with prices driven higher into record territory above $2,000 an ounce as investors assessed prospects of more stimulus to combat the coronavirus pandemic’s fallout, another slide in U.S. real yields and increased geopolitical risks. Bullion is up more than 30% this year, and could extend gains as governments and central banks respond to slowing growth with vast amounts of stimulus. Gold is currently at $ 2022 an ounce and Silver at $ 26.35 an ounce. The NYSE Gold Bugs Index was up 4.44%, local names overnight GFI 235.38, ANG 567.40, HAR 118.99, SSW 50.48.
• AB Inbev, Heineken Cancel Investments Over South African Booze Ban.
• Foreign Investors Are Losing Interest in South African Bonds.
• IMF Urges South Africa Reforms Over Budget Fixes to Boost Growth
ECONOMIC DATA :
9:15am: (SA) July Standard Bank South Africa PMI, prior 42.5
European stocks closed slightly lower as investors reacted to a slew of corporate earnings, after positive manufacturing data around the world drove stocks higher to start the week. The pan-European Stoxx 600 provisionally closed down by nearly 0.2%, with health care stocks tumbling 1.3% to lead losses while oil and gas stocks climbed 2.4%. FTSE + 0.05%, CAC + 0.28%, DAX – 0.36%. Futures across the region point to a better start this morning.
Dow closes higher for a third day, up 160 points, as coronavirus relief talks continue, the Dow gained 164.07 points, or 0.6%, to finish the day at 26,828.47 while the S&P 500 advanced a more modest 0.36% and ended at 3,306.51. The Nasdaq staged a late-day turnaround to add a similar 0.35%, notching its fifth straight day of gains and a record close. The Composite, up more than 21% in 2020, closed at 10,941.17. Economic data out later include US services PMI, survey 49.6 prior 49.6, Trade Balance survey – $ 50.2b prior – $ 54.6b. Markets will be looking ahead for Initial Jobless claims out tomorrow.
Asian markets are mixed this morning as investors wait for news on the Coronavirus deal negotiations in the US. A private survey of China’s services sector in July showed a slower expansion as compared to the previous month, according to Reuters. The Caixin/Markit Services Purchasing Manager’s Index came in at 54.1, lower than June’s reading of 58.4. Mainland Chinese stocks were higher by the afternoon as they recovered from an earlier slip. The Shanghai composite was up 0.29% while the Shenzhen component added 0.893%. Hong Kong’s Hang Seng index gained 0.57%. Tencent + 1.64%. Overall, the MSCI Asia ex-Japan index gained 0.65%.
Oil prices fell for the first time in four days on Wednesday, pulling back from as much as five-month highs as mounting coronavirus cases worldwide and in the United States undercut market confidence in a pickup in fuel demand. Crude inventories were down by 8.6 million barrels in the week to Aug. 1 to 520 million barrels, compared with analysts’ expectations for a drop of 3 million barrels. Brent $ 44.43, WTI $ 41.66.