Asian Stock Markets Mixed, Futures Retreat, Gold & Oil Down

06/11/2020 Wall Street closed positive across the board on Thursday as the world awaits the final outcome of the U.S Presidential elections. Markets in Asia were mixed on Friday with Japan and Australia gaining, while in Hong Kong’s Hang Seng and China’s Shanghai Composite slid. U.S. and European stock futures retreated, Gold and crude oil declined and Treasuries were little changed. Locally, on Thursday the JSE gained almost 3% to 55,225.24 for a fourth day, while the rand is currently trading around R15.7150/$ on optimism of an expected Democrat win. The Top40 index closed 2.97% stronger, mainly helped by platinum miners. Northam skyrocketed 7..87% at the close as the company announced is in talks to bring the buyback of shares from its Black empowerment partner to an early conclusion. The blue-chip Top40 is currently flat YTD, while the JSE/All-Share has lost 3.26% YTD.

NEWS:
• Energy Transition Threatens 120,000 South African Coal Jobs
• U.K. Extends Wage Support; Greece Imposes Lockdown: Virus Update
EQUITY PREVIEW:
• (AVI SJ): AVI Sees 1H EPS Incl. Capital Gains & Losses 22%-32% Lower y/y
ECONOMIC DATA:
• 8am: (SA) Oct. Gross Reserves, prior $54.4b
• 8am: (SA) Oct. Net Reserves, prior $50.7b
GOVERNMENT:
• 10am: The hearings of the Judicial Commission of Inquiry into Allegations of State Capture, Corruption and Fraud in the Public Sector including Organs of State will continue in Johannesburg
DOLLAR INDEX:
Dollar back into March downtrend in sign of false breakout

EU/UK/US
European markets were jovial as Biden inched towards the White House albeit the count in key states continued amid threats of legal challenges by President Donald Trump. The the Stoxx 600 index was up 1.05% with the French CAC 40 1.24% higher and the German DAX by 1.98%, while the FTSE100 lagged European peers, 0.37% in the green, as the pound climbed after the Bank of England expanded its bond-buying program. The Bank also warned unemployment would rise to 7.75% next year and the economy would not return to pre-Covid pandemic levels until the first quarter of 2022, rather than the previously forecast final quarter of 2021.

The Dow closed 542.52 points higher, or 1.95%, on Thursday, while the S&P 500 was 1.95% firmer and the Nasdaq advanced 2.59% at the end of trading. Joe Biden has been projected to win both Michigan and Wisconsin, two states that Donald Trump pried away from Democratic Party back in the 2016 presidential election, leaving him just 17 electoral college votes shy of the White House. Stimulus News: Senate Majority leader Mitch McConnell said that passing further stimulus would be the chamber’s top priority when it reconvenes. U.S futures retreating, taking a breather while waiting for the final outcome of the elections:-
• Dow futures -149 points or -0.53%
• S&P 500 futures -23.75 points or -0.68%
• Nasdaq futures -142.25 points or -1.21%

The U.S. non-farm payrolls report is due Friday.

ASIA/COMMODITIES
Asian markets mixed as the trades wait to see if the Joe Biden will move into the White House. MSCI Asia Pacific Index +0.3%, Japan’s Nikkei 0.99% firmer, Australia’s ASX200 gaining 0.82% while both the Hang Seng and Shangahai Composite slid 0.20% and 0.35% respectively.

• Brent crude fell 2.59% to $39.87 a barrel.
• Gold fell 0.59% to $1,937.78 an ounce after surging 2.5% on Thursday.