09/11/2020 The JSE/All-Share index bagged 2.10% on Friday to 56,387.04, firming up for the fifth consecutive day, with the Top-40 also advancing 2.18% at the close. The rand ended the day on Friday R15.70/$, gaining 4.52% in 5 days against the greenback and is set to continue riding the wave as Joe Biden unseated Donald Trump as U.S. President. Investors hope this set of events will cause Trump’s “America First” policy to be rescinded and chaotic policy-making to end, including Sino-US tensions. Biden in his victory speech promised swift action against the pandemic and an orderly transfer of power, though President Donald Trump is weighing legal challenges and has so far refused to concede. On Friday, U.S. stocks closed mixed as investors continue to wait for an election outcome. Asian markets steam ahead on Monday morning as investors relieved that U.S. elections are finally decided. IG markets are indicating a strong-positive start to the day, with Top40 futures surging 700+ points. Tencent 2% firmer in Hong Kong.
The Economic Week Ahead
European equity markets closed beneath the waterline on Friday as investors awaited the outcome of the US election and warily watched the continued spread of Covid-19 infections. The pan-European Stoxx Europe 600 index was down 0.20%, alongside a 0.7% drop for the Dax, while the Cac-40 fell 0.46% and the FTSE100 marginally gaining 0.07%. Shares of Compagnie Financiere-Richemont soared 9% after profits fell sharply in its first half-year as the pandemic hit sales hard, but said it saw some positive trends in the second quarter. The Dow slipped 0.24% on Friday at the close halting a four-day rally as votes continued to be counted in swing states Nevada, Arizona, Pennsylvania and Georgia. The S&P 500 flat 0.03%, while the Nasdaq marginally notched up 0.04% at the end of trading. U.S stock index futures cheery after Biden’s Presidential election win:- Dow futures +400 points or +1.49, S&P 500 futures +62.75 points or +1.79%, Nasdaq futures +321.75 points or +2.66%. Apple has placed Pegatron Corp on probation after it discovered violations related to a student worker program and said Pegatron will not receive any new business until it takes corrective action.
These are some key events coming up:
• Brexit trade-deal talks between the U.K. and EU continue in London Monday with several tricky sticking points remaining
• Tuesday is the EU’s target date for triggering tariffs on as much as $4 billion of U.S. goods in retaliation over illegal aid to Boeing Co.
• Alibaba holds its annual Singles’ Day on Wednesday, an online global shopping phenomenon that had $38 billion of sales last year
• ECB President Christine Lagarde, BOE Governor Andrew Bailey and Fed Chair Jerome Powell are among the speakers Thursday at an online ECB Forum entitled “Central Banks in a Shifting World”
• Finance ministers and central bankers from the Group of 20 hold an extraordinary meeting Friday to discuss bolder action to help poor nations struggling to repay their debts.
Asia Pacific stocks were up on Monday morning in Asia. Many in the region expect trade tensions to de-escalate under a Biden presidency, a plus for Asian markets and economies.
Japan’s Nikkei 225 surged 2.41% and Australia’s ASX 200 gained 1.7. Hong Kong’s Hang Seng rose 1.59%, while the Shanghai Composite gained 1.96%. Oil prices gained more than 2% on Monday, with Brent futures rising above $40 a barrel. A weaker dollar pushed gold prices up over the weekend. Gold futures were up 0.59% at $1,962.89.