Wall Street Closed Mixed Amid Disappointing Economic Data, Oil Advances Toward $46/barrel.

26/11/2020 The S&P 500 was little changed on Wednesday after the benchmark pulled back from a record, and the Dow fell below 30,000. Volume dwindled at the end of the U.S. session as traders headed out for “Thanksgiving” on Thursday, a holiday that will keep markets closed. Asian stocks fluctuated, showing gains in Japan and modest losses in China. The JSE closed flat -0.03% to 57,742.19 points, with the Top-40 down -0.20%. while the top was flat. Market sentiment remained positive as the formal transition of the U.S. President-elect Joe Biden started, with former Federal Reserve Governor Janet Yellen to be named as US Treasury Secretary. Oil rose for a fifth day on Thursday after a surprise fall in U.S. crude inventories. Local currency at R15.1160/$, having to gain almost 2% against the greenback this week. The synthetic Top-40 futures, IG markets, are pointing 150 points north at the time of the writing. We’ looking forward to a positive start at the opening.

NEWS:
• Western Cape considers local restrictions to fight resurgent Covid-19
• Zizi Kodwa, former ANC Spokesperson, linked to EOH payouts
EQUITY PREVIEW:
• (AAL LN): De Beers, Diacore Partner in Purchase of Five Rare Diamonds
• (SOL SJ): Sasol Affirmed at BB by S&P
EARNINGS:
• Mr Price (MRP SJ)
• Kaap Agri (KAL SJ)
ECONOMIC DATA:
• 11:30am: (SA) Oct. PPI MoM, est. 0.2%, prior 0.3%
• 11:30am: (SA) Oct. PPI YoY, est. 2.5%, prior 2.5%
GOVERNMENT:
• Commission of inquiry into state capture continues
CORPORATE EVENTS
• Annual general meetings: BID SJ, BLU SJ, DSY SJ, MTM SJ, MUR SJ
• Earnings Calls: MRP SJ

EU/UK/US
London stocks finished weaker as Chancellor Rishi Sunak warned on the economy. The Chancellor said the UK economy was forecast to contract by a historic 11.3% this year, as government borrowing neared £400bn, in his spending review during the afternoon. The FTSE 100 closed down 0.64%. Elsewhere in Europe, banking stocks turned sour despite Vice-Chair of the ECB’s supervisory board, saying Eurozone banks may be allowed to resume dividend payouts in 2021 if their balance sheets were strong enough. The pan-European Stoxx 600 index drifted lower 0.08%, with the French CAC 40 up 0.23% and Germany’s Dax little changed 0.02%.

Wall Street closed mixed on Wednesday, with tech stocks hitting a new record but the broader market retreating as labour market it is still struggling under the weight of the pandemic. Nasdaq advance 0.48% at the close, with Tesla hitting a new record high, and now has a market capitalization north of $500 billion (even before it joins the S&P 500). The Dow slipped 0.58% to close below 30,000 mark and the S&P500 lost 0.16%.

ASIA
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3%, while Japan’s Nikkei gained 0.45%. Asian shares advanced as hopes over COVID-19 vaccines and the prospects of more political stability and economic stimulus under the incoming Biden administration overrode a slate of weak U.S. economic data. Hang Seng flat 0.01%, while both Shanghai and ASX200 are in the red 0.37% and 062% respectively. Brent futures were up 0.51% at $48.86 a barrel, while WTI crude was up 0.37%, at $46.05 a barrel, having gained 1.8% on Wednesday.