Global Markets Mixed, Oil Extend Gains, Dollar Slips

11/12/2020 Wall Street closed mixed on Thursday as investors weighed fading prospects for a stimulus deal in Washington against disappointing U.S. jobs data. Shares rose in Hong Kong and slipped in Japan and China. Oil extended an overnight gain, with Brent oil futures above $50 mark – first time since March – and WTI futures inching up 0.26% to $46.90. The euro strengthened on a further monetary policy boost in the region, the pound fluctuated as U.K. Prime Minister Boris Johnson warned Britain should prepare to leave the European Union without a trade deal. The U.S. index futures are little changed.

The rand broke a three-day winning streak to breach the R15.00/$ mark as US stimulus talks stalls and continuing Brexit talks add uncertainty to the markets. On Thursday the JSE closed flat -0.02% to 59282.77, and so is the Top-40 marginally weaker -0.03%. Banks and financials fell 3.10% and 1.94%. IG markets indicating a softer start at the opening, Top40 futures up 96 points.
NEWS:
• South African Union Calls Pay Offer to SAA Staff ‘Robbery’
• South Africa Declares Second Coronavirus Wave as Cases Surge
• South Africa Alcohol Industry to Withdraw Support for Big Events
• Eskom issues warning regarding a high probability of scheduled power cuts as the system is severely constrained
• QUILTER’S BOARD INITIATED STRATEGIC REVIEW OF QUILTER INTL
EARNINGS: (All times Central African Time)
• *TONGAAT HULETT PVT LTD 1H OPER PROFIT 1.9B RAND
GOVERNMENT:
• Chief Justice Mogoeng holds briefing on 2019-20 Judiciary annual report
• Eskom Holdings SOC Ltd and the Special Investigating Unit hold briefing regarding a development in the fight against corruption

EU/UK/US
The Stoxx Europe 600 Index dipped 0.44% at the close, with banks the worst-performing sector. Energy stocks surged along with oil. The ECB earlier delivered another round of monetary stimulus in line with expectations, while keeping interest rates on hold. The Germany’s Dax slipped 0.33%, while France’s Cac-40 managed to close marginally up 0.05%. Brexit talks deadline now extended to Sunday.

The U.S FDA met to discuss Pfizer and BioNTech’s Covid-19 vaccine on Thursday , Wall Street finished mixed following some worse-than-expected jobless claims data. The S&P 500 slipped 0.13%, with energy stocks propping up the index as crude prices rallied to levels unseen since in 9 months. The Dow was down 0.23%, while the Nasdaq Composite advanced 0.54%. Stock futures drifting sideways: Dow futures -0.07%, S&P500 futures -0.16%, Nasdaq futures -0.27%

ASIA
MSCI’s ex-Japan Asia-Pacific index rose 0.5%, on track for its sixth straight week of gains, while Japan’s Nikkei dropped 0.6%. The Shanghai Composite Index SHCOMP lost 1.44%, alongside the Aussie’s ASX200 slipping 0.61%. The Hang Seng advanced 0.4%.