15/12/2020 The JSE and the rand were firmer yesterday even though SA is in the midst of a second wave of Covid-19 infections, as continued hope for a US stimulus package and vaccine rollouts help lift investor sentiment. The JSE All-Share was 0.16% better with MTN up 8.92 % after been down 10 % the previous session. Local markets are closed tomorrow for Freedom day and then we have Futures close out Thursday and Index rebalancing on Friday so we can expect good volumes into the weekend. We can expect the JSE to open lower this morning on the back of the sell off in the US and softer markets in Asia, Tencent won’t be helping as it trades 1.14% lower. IG Top 40 at the moment is 290 points lower.
The government moved to curb alcohol sales and close some of the nation’s beaches at the height of the summer-holiday season, among a series of new restrictions to rein in surging coronavirus infections.
• Latest Covid-19 numbers: 23 451 deaths, 866 127 cases and recovery rate drops to 88%
ECONOMIC DATA :
9am: Oct. Leading Indicator, prior 105.3
11:30am: Nov. PPI YoY, est. 2.8%, prior 2.7%
11:30am: Nov. PPI MoM, est. -0.2%, prior 0.4%
12:30pm: 3Q Non-Farm Payrolls QoQ, prior -6.4%
12:30pm: 3Q Non-Farm Payrolls YoY, prior -6.6%
In Europe the pan-European Stoxx 600 closed up over 0.4%, with banks climbing 1.5% to lead gains as most sectors and major bourses remained in positive territory. The U.K.’s FTSE 100, however, dipped 0.2%. Britain and the EU agreed on Sunday to keep negotiating over a Brexit trade deal, taking talks to the wire as key differences remain. Sterling bounced on the news, but U.K. Prime Minister Boris Johnson still warned businesses to be ready for a “no-deal” exit on Dec. 31 when the transition period ends. Germany will go into a full lockdown over the Christmas period amid a rise in coronavirus deaths and infections. Nonessential shops and schools will close across the country starting Wednesday. DAX +0.83%, CAC + 0.37%, FTSE – 0.23%
The Dow and S&P 500 fell overnight as fears of additional Covid-19 restrictions offset the optimism around a vaccine rollout. The 30-stock Dow closed lower by 184.82 points, or 0.6%, at 29,861.55. At its session high, the Dow was up more than 200 points and hit an all-time high. The S&P 500 declined by 0.4% to 3,647.49, posting its first four-day losing streak since Sept. 21. The Nasdaq Composite outperformed, rising 0.5% to 12,440.04. New York City Mayor Bill De Blasio warned earlier in the day that the city could experience a “full shutdown” soon. His comments put pressure on the markets.
Meanwhile, lawmakers in Washington tried once again to push forward on a new coronavirus stimulus package. A bipartisan group of congressional members plans to release a $908 billion stimulus package. However, some key disagreements remain between both parties, particularly over state and local government aid.
Stocks in Asia-Pacific are lower this morning as concerns over a coronavirus surge in multiple countries dulled optimism over the vaccine rollout in the U.S. Chinese mainland stocks were lower this after data showing China’s industrial production grew 7% year-on-year in November.That was in line with expectations from a Reuters poll. Meanwhile, retail sales in China increased 5% in November as compared with a year ago, missing forecasts for a 5.2% increase by analysts in a Reuters poll. MSCI’s broadest index of Asia-Pacific shares outside Japan declined 0.54%. ASX 200 – 0.43%, Nikkei – 0.34%, HangSeng – 0.87%.
Oil prices are lower on tighter lockdown concerns outhweighing vaccine relief, OPEC on Monday pared its forecast for the oil demand recovery in 202l by 350,000 barrels per day, due to the persistent impact of the coronavirus pandemic, but said a rapid rollout of vaccines in major economies “provides potential upside for next year’s growth forecast.” Brent – 0.62% $ 49.98, WTI – 0.62% 46.70.
Gold edges a little higher as the Covid 19 restrictions are enforced and the US Dollar hovers near a two and a half year low. Gold + 0.63% $ 1840, Silver rose 0.7% to $23.99 an ounce, platinum added 0.1% to $1,008.76 and palladium gained 0.4% to $2,300.45.