07/05/2021 Asian stocks headed higher after rallies in U.S. overnight on positive economic data, and commodities extended their advance with Copper at all-time highs and Iron ore broke $200 for the first time.
Locally retailers and banks led the JSE gains yesterday, while global markets were mixed as investors weighed up the prospects of economic recovery against the threat of Covid-19 in some countries. The JSE all share gained 0.39% and the top 40 0.28%, with Golds leading the way as Bullion soares through $ 1800 an ounce. ANG and GFI were both up 3.09%. We should see the local market open up despite Tencent been down 1.23%, IG Markets Top 40 is up 229 points. Moody’s is scheduled to review its assessment of SA’s debt early this evening. The ratings company will hopefully adopt a “wait-and-see” approach at least until next year’s budget, after it kicked the country further into junk status in November.
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European markets closed mixed yesterday as investors monitored a slew of corporate earnings and comments from the Bank of England. The pan-European Stoxx 600 ended the session down by 0.1% having earlier climbed above the flatline. Travel and leisure stocks led the losses to slide 1.7%, as sectors and major bourses struggled for direction. The Bank of England kept its benchmark lending rate and quantitative easing program unchanged on Thursday, while noting that the U.K.’s economic recovery is accelerating. The BOE upgraded its 2021 growth outlook for the world’s fifth-largest economy to 7.25%, slightly above analyst expectations.
Futures across the region are all up this morning with the FTSE + 0.56% and the DAX + 0.64%.
In the U.S the Dow added 318 points, or 0.9%, to close near its session high and clinch a record close of 34 548.53. The S&P 500 rose 0.8% to 4 201.62. The Nasdaq erased earlier losses and gained 0.4% to 13 632.84. Yesterday’s gains came after a better-than-expected reading on jobless claims. First-time claims for unemployment insurance totaled 498,000 for the week ended May 1, hitting a fresh pandemic-era low and better than a Dow Jones estimate of 527,000. The Labour Department is set to publish April’s jobs report at 14:30 today. Economists polled by Dow Jones expect 1 million payrolls to have been added last month and the unemployment rate is expected to have fallen to 5.8% from 6%. Futures this morning are all small in the green.
Asia-Pacific markets broadly advanced today ahead of the U.S. jobs report due later in the day that might provide some indication on what the Fed could do next. Japan’s Nikkei 225 erased early losses to rise 0.33% while the Topix index added 0.56%. In South Korea, the Kospi extended gains to trade up 0.75% while in Australia, the benchmark ASX 200 reversed losses to advance 0.46% as major banks and miners rose. Chinese mainland shares also advanced after wavering in the first half hour of trade: The Shanghai composite rose 0.36% while the Shenzhen component gained 0.45%. Tencent – 1.23%.
Gold jumped over 1% yesterday with a weaker dollar and easing Treasury yields propelling it over the key $1,800 psychological level. Spot gold rose 1.6% to $1,814.50 per ounce and this morning is trading at $ 1820, its highest since Feb 16. Platinum is up 0.23% and Palladium up 0.48% after a sell off yesterday.
Copper soared to an all-time high as optimism about a global rebound from the pandemic spurs a surge across commodities markets. Copper rose as much as 1.4% to $10,232 on the London Metal Exchange before trading at $10,215 by 12:23 p.m. in Hong Kong. Prices are up more than 30% this year and have more than doubled from lows in March of last year.
It’s not just copper. Steel prices across Asia and North America are booming, benchmark spot iron ore is at a record as miners struggle to keep up with the frenzied pace of consumption, and tin topped $30,000 for the first time in a decade. The Bloomberg Commodity Spot Index jumped to its highest since 2011 as growth bets boost demand, while poor weather hurts crop prospects and transportation bottlenecks crimp supplies.
Oil headed for a second straight weekly advance as investors bet on rising energy demand amid a broad rally in commodities, with robust trade data from China highlighting the strength of the global economy. Brent + 0.63%, WTI + 0.61%.