22/09/2020 Asian markets dipped on Tuesday after U.S. equities slid on concerns over coronavirus restrictions. An investigation by the International Consortium of Investigative Journalists says JPMorgan, Deutsche Bank AG and HSBC Holdings Plc were among the global banks who “kept profiting from powerful and dangerous players” in the past two decades even after the U.S. imposed penalties on those financial institutions. Benchmark indices Hong Kong, China and Australia fell this morning. The JSE ended the day on the backfoot, tracking global counterparts. The local bourse gave up lost 2.48% to 53,319.08 points and the Top 40 slid 2.47% by the close of trading on Monday. Banks dropped 3.11% and financials 3.02%, while both resources and gold mining lost 2.72% and 2.46% respectively. The rand wiped out its gains against the dollar, dropping almost 3.5% to R16.8650. Yield on 10 year govt rand bonds rose 13.3 bps to 9.325%. Tencent off 0.58% in Hong Kong.
• (HYP SJ): Hyprop FY Net Loss 3.40 Bln Rand Vs. Profit 164.9 Mln Rand Y/y
• (SLM SJ): Avior Upgrades Sanlam, Citing an Attractive Entry Point
• (SOL SJ): Sasol ‘Far Advanced’ in Securing Partner for Base Chemicals Unit
• EARNINGS: ATT SJ, HYP SJ
• ECONOMIC DATA :9am: (SA) July Leading Indicator, est. 95, prior 94.1
• SOUTH AFRICA REPORTS 39 ADDITIONAL CORONAVIRUS DEATHS
European markets were depressed by the close on Monday, with: Travel, Hospitality and Leisure stocks all deep in the red as investors mulled the prospect of tougher lockdown restrictions, while banks slumped after a cache of leaked documents suggested increased scrutiny on suspect transactions. Deutsche Bank slumped more than 8%, while Standard Chartered fell 6%. Barclays, HSBC and Commerzbank were also sold off. The pan-European STOXX 600 fell 3.24%, alongside a 4.37% drop for the DAX, while the FTSE100 ended the session down 3.38%.
The Dow Jones closed 509.72 points lower, or 1.84%, on Monday, extending last week’s losses. U.S. equity indices sank as the prospect of new virus restrictions and Sino-U.S tensions stoked pessimism. The S&P500 lost 1.16% by the end of trading, while the Nasdaq saw out the day’s session 0.13% softer. Nikola shares tumbled after revealing that founder and chairman Trevor Milton would be stepping down from the company amid accusations of fraud. Stock index futures still lower on Tuesday morning: the Dow on the backfoot 51 points, or 0.20%, with the S&P500 also 0.20%, while the Nasdaq trailing behind at 0.32% in the red.
These are some events to watch this week:
• Powell appears before the House Select Subcommittee on the coronavirus to discuss the central bank’s response on Wednesday.
• U.S. initial jobless claims are due Thursday.
Markets slipped on Tuesday in Asia after worries about the pandemic’s economic pain. Hong Kong’s Hang Seng lost 0.49% and ASX200, in Australia, lost 0.59% to and the Shanghai Composite index edged 0.39% lower. Tokyo’s markets were closed for a national holiday. The specter of tougher restrictions to stem rising coronavirus counts has added to jitters over the pandemic and its impact on the economy.
Oil was up on Tuesday as Tropical Storm Beta in the Gulf of Mexico weakened. Brent oil futures were up 0.31% to $41.56 and WTI futures rose 0.48% to $39.52.
Wishing You All A Good DAY Ahead 😉