Global Stocks Rise; Oil Pulls Back As Ship Re-floated In Suez Canal

29/03/2021 The local market closed firm on Friday, cheering US jobless claims pointing to an economy recovering from the pandemic. JSE’s All-share index broke a four day losing streak, inching up 3.16% to 66,833 points and the Top-40 3.32%. Financials advanced 2.68%, banks 2.44% and industrials 2.23%.

Asian equities markets firm on Monday, taking cue from Wall Street record close on Friday, while U.S. equity futures dipped as traders assessed a $20 billion wave of block trades. Oil fell after salvage teams freed a ship in the Suez Canal, though unclear at this stage how soon the trade route will be open. Archegos Capital Management LLC was behind the block trades, selling Chinese tech giants and U.S. media conglomerates amid margin calls. Brent oil was down 1.7% at $63.747 a barrel, while U.S. crude fell 1.84% to $59.85 a barrel. Gold was down on Monday, with the yellow metal’s safe-haven status taking a hit as investors turned to the strengthening dollar. Gold futures edged down 0.133% at $1,726.82. With Top-40 futures down 81 points and Tencent, in Hong Kong, below the watermark 2.50%; we probably looking at a softer start at the opening bell of the JSE.

NEWS:
• Ship Partly Refloated After Latest Recovery Attempt: Suez Update
• Futuregrowth Says Land Bank Proposal ‘Unsatisfactory’
• South Africa Set to Tighten Curbs to Preempt Third Wave of Virus
• Sibanye Eyes Precious-Metals Giant to Rival Top Gold Miners
• Government is due to give its response to civil-servants unions’ demand for a wage increase of inflation plus four percentage points
EQUITY PREVIEW:
• Standard Bank Raised to Buy at SBG Securities; PT 150 rand
• S.Africa Tribunal Approves Mr Price Purchase of Otto Brothers
• Metair Investments Raised to Overweight at ABSA Securities

EU/UK/US
European stock markets held onto moderate gains on Friday, driven by hopes of a strong US recovery from the coronavirus pandemic and positive UK retail sales data.
The pan-European Stoxx 600 index was up 0.91%, alongside a 0.87% advance for the German Dax while the London’s FTSE100 bounced back 0.99%. Retail sales rose 2.1% on the month in February, in line with consensus expectations and compared to an 8.2% slump the month before.

The S&P 500 rose for a second day, advancing 1.66% at the close as President Joe Biden’s doubled his vaccine goals for his first 100 days in office. The Federal Reserve freed banks from dividend restrictions. Both the Dow and the Nasdaq marched ahead to gain 1.39% and 1.24% at the close. S&P 500 futures fell 0.77%, Nasdaq 100 futures declined 0.98%, Dow futures fell 0.56%, VIX Index futures gained 0.8% and 10-Year Treasury yield at 1.67%.

Some key events to watch this week:
• President Biden is expected to unveil his infrastructure program Wednesday.
• EIA crude inventory report Wednesday.
• OPEC+ meets to discuss production levels for May on Thursday.
• China Caixin PMI due Thursday.
• U.S. employment report for March on Friday.
• Good Friday starts the Easter weekend in countries including the U.S., U.K., France, Germany, Australia and Canada.

ASIA
MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.3%, Chinese blue chips rose 0.8%. Japan’s Nikkei gained 0.5%, though there was some nervousness when Nomura reported its U.S. unit could face a $2 billion loss related to a client. There was also some caution after a $20 billion wave of block trades hit markets on Friday, reportedly linked to investment fund Archegos Capital. Hang Seng slipped 0.31%, Tencent on the backfoot 2.42%. Markets in Australia are 0.32% in the red, weighed down by both the real estate and financial sectors