Asian Markets Mixed After Chines Economic Data Shows Recovery, U.S Closes Firmer

15/09/2020 Asian stock markets drifted on Tuesday as investors turned their attention to the FOMC meeting for clues on monetary policy as economies recover from the pandemic. Hong Kong stocks rose after Chinese economic data showed the recovery gathering pace. Equities also climbed in mainland China, while Australia slipped. S&P 500 futures edged up after the benchmark gained Monday. The Nasdaq 100 Index broke a two-day slide. Strategists at Goldman Sachs Group Inc. and Deutsche Bank AG suggested the recent pullback in the U.S. is nearing an end. Locally, on Monday the JSE cheered the hunt for the vaccine, Covid-19, with globla markets. The local bourse rose 0.43% to 56,327.05 points and the blue-chip Top 40 0.51%. Resources gained 0.80% and gold miners 3.02%. The rand 0.40% firmer against the greenback at R16.6010 this morning, while the Yield on 10 year govt rand bonds fell 5.1 bps to 9.294%. Tencent 0.28% firmer in Hong Kong, Top 40 futures on IG markets up 30 points.

• (CFR SW): Richemont Climbs Again as LVMH Takeover Speculation Continues
• (PPC SJ): PPC Gets Funding Confirmation From South African Lenders
• EARNINGS: 7:05am: *HARMONY REPORTS 9% INCREASE IN FY PRODUCTION PROFIT TO ZAR7.2B, *AFRICAN RAINBOW CAPITAL INVESTMENTS IN ZAR750M RIGHTS OFFER
• President Cyril Ramaphosa to chair meetings of the National Economic Development and Labour Council and the President’s Coordinating Council to discuss and finalize economic recovery plan and response to coronavirus pandemic.
• Last Day To-Trade (EX DIV tomorrow) : ABSP SJ @ 2741cps, RES SJ @ 100cps, EMI SJ @ 30cps

EU/UK
The Stoxx Europe 600 Index ended the session up 0.2%, after testing its 200-day moving average and again failing to break out, with the technical indicator continuing to act as a ceiling. Monday’s gains were offset by a drop in energy shares, falling along with crude prices. Credit Suisse Group AG shares gained after a report about UBS Group AG’s chairman exploring a potential tie-up next year. London’s FTSE100 ended the session down 0.1%, but the DAX reveres course dipping 0.07%, while the CAC-40 fared better at 0.35%. Euronext confirmed that it has made a non-binding offer to London Stock Exchange to buy Borsa Italiana. The offer was made in partnership with Italian state lender Cassa Depositi e Prestiti (CDP) and Intesa Sanpaolo.

US
U.S. stocks rose for a second straight day following big deal announcements and signs of progress toward a coronavirus vaccine. Oracle jumped as much as 7.9% on reports the company beat Microsoft in negotiations for the U.S. operations of TikTok. The S&P 500 gained for a second day, while the Nasdaq 100 Index broke a two-day slide. At the close: the Dow was up 1.18%, while the S&P 500 was 1.27% stronger and the Nasdaq Composite saw out the session 1.87% firmer. U.S. stock futures firmer early Tuesday morning after the market kicked off the week with a broad-based rally. Dow rose 67 points, or 0.24%, futures tied to the Nasdaq 100 and S&P 500 also both traded in positive territory; up 0.37% and 0.25% respectively.

ASIA
China reported on Tuesday that retail sales returned to growth in August for the first time in 2020, rising 0.5% year over year. Industrial production also rose 5.6%, up from the previous month and topping analysts’ estimates. MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 0.5%. Japan’s Nikkei225 shed 0.5%, while both the HangSeng and Shanghai Composite gained 0.55% and 0.77%. Australia’s S&P/ASX 200 index slipped 0.12%. Japanese Chief Cabinet Secretary Yoshihide Suga won a landslide victory in a ruling party leadership election, paving the way for Japan’s first change of leader in nearly eight years.

COMMODITIES
Gold rose on Tuesday morning in as the dollar dragged down. The precious metal pushed up by 1% after the greenback had its worst day in a fortnight. Trading in Asia pushed gold even higher as the currency differential came into full effect, making gold cheaper for currencies other than the dollar. Gold futures were up 0.59% to $1,968.36, a 12-day high.