We are pointing to a better start again, with U.S. and European futures

25/08/2020 We are pointing to a better start again, with U.S. and European futures that climbed alongside most Asian stocks this morning on optimism about treatments for the coronavirus and signs of progress on trade negotiations. The JSE top 40 futures are up 307 points or 0.59%.
The National Treasury will sell 6.6 billion rand of bonds due 2026, 2030 and 2048 at the weekly fixed-rate debt auction. The sale closes at 11am.

  • 9am: Department of Public Enterprises and Eskom brief lawmakers on their responses to the Independent Electricity Management Operator Bill
  • 11am: Transport Minister Fikile Mbalula announces new Covid-19 regulations related to the sector
  • (ABG SJ): Absa Sees Virus Pain Easing After Front-loading Impairments
  • (BLU SJ): Blue Label Sees Rebound in Earnings for Year Through May
  • (REM SJ): Remgro Holder to Offer 5.5m Shares via Goldman Sachs

EARNINGS:

  • Imperial Logistics (IPL SJ) Full Year Net Loss 303 Mln Rand
    FY ADJ EPS 1.01 RAND
    FY CONTINUING REVENUE UP 5% TO 46.4B RAND
    FY HEADLINE EPS CONT OPS 1.56 RAND
    FY TOTAL CASH DIVIDEND OF 167C/SHR
    SCRAPS FINAL DIVIDEND
  • Italtile (ITE SJ) Full Year Headline EPS 0.792 Rand Vs. 1.018 Rand Y/y
    FY DIV/SHR 0.33 RAND VS. 0.41 RAND Y/Y
    FY TRADING PROFIT 1.50B RAND, -17% Y/Y

ECONOMIC DATA:

  • 9am: (SA) June Leading Indicator, prior 95.7

MARKETS
Yesterday the FTSE/JSE Africa All-Share Index closed up 1.2% to 56,625, with banks and retailers leading gains on the back of a stronger currency as risk sentiment returned on vaccine hopes, with gold sector down on the day. Aspen rallied 10% after saying it resumed talks to sell part of their European drugs business. Bidcorp however fell 6.9% after warning that HEPS would be down as much as 50%. The Rand was up 1.3% to 16.93 vs the USD, with the Yield on 10 year govt rand bonds that rose 5.2 bps to 9.317%.

EU/UK
European stocks closed higher yesterday as investors weighed the latest financial, geopolitical and coronavirus news worldwide. The Stoxx Europe 600 Index ended up 1.6%, with almost all sectors and major bourses in positive territory. Stocks followed the trend set by their counterparts in Asia Pacific, where stocks were higher in Monday morning trade as investors continued to watch developments in the coronavirus pandemic. In London the FTSE 100 put on 1.7%, the German Dax gained 2.3%, with the Paris CAC 40 adding 2.2%. BT was among the top performers, closing 7% higher, with the bounce coming shortly after Sky News reported the company was preparing to defend itself against takeover approaches from industry rivals and buyout firms.
U.S.
Stocks rose to an all-time high on Monday, lifted by gains in tech and some reopening names, as sentiment around the coronavirus pandemic improved. The Dow Industrial jumped 378 points, or 1.4%, with the S&P 500 that climbed 1% to 3,431.28 and hit an all-time high. Monday also marked the S&P 500′s first-ever close above 3,400. The Nasdaq Composite advanced 0.6% to 11,379.72 and also reached a record. Apple shares rose 1.2% to lead other tech-related names higher. Facebook climbed 1.6% and Amazon advanced 0.7%. Alphabet rose 0.6%. Shares of airlines and cruise operators gained amid positive coronavirus treatment developments. United Airlines rose by more than 9% along with American. Delta gained 9.3%. Carnival advanced 10.2%. Norwegian Cruise Line and Royal Caribbean closed higher by 7.6% and 4.7%, respectively.
ASIA
Stocks rose in Japan, Australia and South Korea, fluctuated in China and dipped in Hong Kong. The Nikkei is up 1.3%, the Hang Seng negative, -0.42% (Tencent -0.73%) and the Shanghai also lower -0.37%. In OZ the ASX 200 put on 0.52%, with the metals & mining index down 0.8%. The U.S. and China spoke about the phase-one trade pact. Both sides see progress and are committed to the success of the agreement.
COMMODITIES
Oil hovered around the $42.50 a barrel mark in Asian trading as one of two storm fronts menacing crude production and refineries in the U.S. Gulf of Mexico was downgraded, while the other gathered strength. Futures in New York were little changed after rising 0.7% yesterday.
Gold advanced slightly trading around $1,934 an ounce, following a two-day drop as the head of the U.S. Food and Drug Administration walked back his claim that an experimental therapy had provided a dramatic benefit to Covid-19 patients, while Pacific Investment Management Co. said it remained bullish on bullion. Platinum and Palladium prices are also better this morning.