Global Rally In Equity Markets Cools

12/11/2020 On Wednesday the JSE slipped 0.11% to 57,607.30, taking a breather from a seven-day winning streak dragged down by Naspers and Prosus. The Banking and industrials sector cushioned the losses on the All-Share as both indices advanced 6.80% and 5.84% at the close, with the local currency holding its ground against the greenback at R15.6733 -slipping 0.18% on the day. Top-40 lost 0.26%. Markets in Asia-Pacific were below the waterline on Thursday as vaccine enthusiasm cools. Technical indicators show that the rally in Asian stocks could be overheating as they near record highs. European and U.S. equity futures slipped. Oil steady above $41 on hopes OPEC+ will hold back supply as COVID-19 cases rise. Algeria’s energy minister said on Wednesday that OPEC+ could extend current production cuts of 7.7 million barrels per day into 2021, or deepen them further if needed. Gold was up on Thursday morning after further losses in late Wednesday trading, a weakening dollar has returned attention to the safe-haven metal. Gold futures were up 0.28% at $1,871.03

NEWS:
• South Africa Extends Virus State of Disaster to Dec. 15
• South African Auditor-General Kimi Makwetu Dies
EQUITY PREVIEW:
• (PPC SJ): PPC ‘on Track’ to Test Investor Appetite for Recapitalization
• (SOL SJ): Sasol CEO Looks to Northern Mozambique Pipeline for Gas
• (GRT SJ): Growthpoint to Offer Shrs
• (MDC LN): Mediclinic Upgraded at Avior Ahead of Thursday’s 1H Earnings
• (TFG SJ): Avior Upgrades Foschini, Lauding Shift from Stores to Digital
EARNINGS:
• Gold Fields (GFI SJ)
• MultiChoice Group (MCG SJ)
• Mediclinic (MDC LN)
ECONOMIC DATA:
• 11:30am: (SA) 3Q South Africa Unemployment, est. 31.0%, prior 23.3%
• 11:30am: (SA) Sept. Mining Production YoY, est. -2.5%, prior -3.3%
• 11:30am: (SA) Sept. Mining Production MoM, est. 1.05%, prior 6.8%
• 11:30am: (SA) Sept. Platinum Production YoY, prior 12.7%
• 11:30am: (SA) Sept. Gold Production YoY, prior -14.8%
GOVERNMENT:
• Independent Electoral Commission to announce results of series of by-elections held across South Africa on Wednesday
CORPORATE EVENTS:
• Sales Results: GFI SJ

EU/UK/US
European stock markets pushed further into positive territory by the close on Wednesday as optimism over a Covid-19 vaccine continued to underpin sentiment. Real estate, utilities and health care paced the gains while banking and construction stocks lagged, marking a reversal of the rotation into value shares. The Stoxx 600 Index advanced 1.1% by the close in London, with the FTSE100 advancing 1.35%. The German Dax 0.40%, alongside the CAC-40 in Paris firming up 0.48%.

Wall Street closed mixed on Wednesday, as traders snapped up technology stocks that were battered earlier in the week. Speculations are rife that an uptick in virus cases will lead to more lockdowns, which will see stay-at-home stocks surging. The Dow slipped 23 points, or 0.08%, at the close; while the gained 0.77% alongside the Nasdaq rallying 2.01% at the close. U.S futures drifting in negative territory this morning: Dow futures -195 points or -0.67%, S&P 500 futures -18 points or -0.49%, Nasdaq futures -16 points or -0.13%.

These are some key events coming up:
• European Central Bank President Christine Lagarde, Governor Andrew Bailey and Federal Reserve Chairman Jerome Powell are among the speakers Thursday at an online ECB Forum entitled “Central Banks in a Shifting World.”
• U.S. CPI data for October is due on Thursday.
• 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
Markets in Asia mixed on Thursday. MSCI Asia Pacific Index +0.2%, Top contributors include: Tencent +5.3%, Nintendo +3.6%, TSMC +0.5%. Japan’s Nikkei up 0.27%, while Hong Kong’s Hang Seng flat -0.1%. Shanghai Composite flat 0.01%, with Aussie’s ASX200 giving up 0.49% dragged by both financials -1.75% and industrials -0.71%