Asia Mixed, U.S. Futures Decline, Dollar Bounces

28/10/2020 Concerns still linger globally about the increase of reported covid-19 cases, imposed lockdowns in Europe and subsequently the impact on economic activity in some parts of the world. On Tuesday Asian stock markets are mixed with shares in both Japan and Hong Kong dropping, while markets in China an Australia are marginally above the waterline. The S&P 500 retreated on Tuesday, but tech shares advanced. The dollar rebounded against major peers. The JSE retreated 1.48% to 54,079.4 on Tuesday, alongside the Top falling 1.44%. Sasol Ltd. fell 10.23%, more than any full-day loss since June 10 as South Africa’s benchmark index declined. Naspers advanced 2.047% at the close, alongside Prosus gaining 1.59% as U.S court upheld stay in WeChat ban. Multichoice tagged along, bagging 0.76% at the close. Capitec was 1.44% firmer, rising for the 10th day; the longest streak in 4.5 years. Rand flat at 16.2050. Yield on 10 year govt rand bonds fell 3.7 bps to 9.236%. Tencent still in jovial mood, the stock 2.20% firmer in Hong Kong on Tuesday.

• Finance Minister Tito Mboweni will present the medium-term budget policy statement at 2 p.m.
• Opposition Wins Court Battle for Control of Capital
• Ramaphosa Denies South Africa Planning Stricter Lockdown
• S. Africa Needs $11 Billion To Help Transition From Coal: Study
• 10am: (SA) Sept. CPI YoY, est. 3.0%, prior 3.1%
• 10am: (SA) Sept. CPI MoM, est. 0.2%, prior 0.2%
• 10am: (SA) Sept. CPI Core YoY, est. 3.2%, prior 3.3%
• 10am: (SA) Sept. CPI Core MoM, est. 0.1%, prior 0.2%
• Annual general meeting: Sun International (SUI SJ)

The Stoxx Europe 600 Index retreated 0.95% to the lowest level since May by the close on Tuesday with insurance, energy and carmakers pacing declines. Even positive trading updates from HSBC Holdings Plc, Novartis AG and BP Plc didn’t help sentiment. London’s FTSE100 slipped 1.09%, alongside a 0.94% fall for the German Dax, while the CAC-40 gave up 1.77%. German Chancellor Angela Merkel said Germany was on the verge of losing control of its fight against coronavirus as a further 8,685 cases were confirmed in the country on Monday. Italians protested on Monday night after stricter measures were introduced, including a 6pm closures of bars and restaurants. Intensive care capacity in the Paris region was at two thirds. Wall Street closed mixed with the Dow loosing 222 points, or 0.80%, the S&P500 slipping 0.30%, while the Nasdaq gained 0.64% at the end of the session. Senate Majority Leader Mitch McConnell adjourned the Senate until 9 November; prospects of a deal being reached before the election seems slim at best. U.S futures lower on Wednseday: Dow futures on the backfoot 155 points, 0.55%, with the S&P 500 losing the same at 0.52%, while the Nasdaq’s are in the red 0.37%

Japan’s benchmark Nikkei 225 fell 0.33%, while Australia’s ASX 200 gained 0.11%. Hong Kong’s Hang Seng dipped 0.3%, while the Shanghai Composite was 0.45% firmer. The American Petroleum Institute reported crude inventories expanded by 4.58 million barrels last week, while gasoline stockpiles rose for a second straight week. Government figures are due Wednesday. Oil rallied on Tuesday after almost half of U.S. Gulf output was shuttered ahead of Zeta, which is expected to make landfall in Louisiana late Wednesday.

Happy Hump Day 😉