09/03/2021 Nasdaq 100 futures are gig her after an overnight slump in technology stocks, while buying by Chinese state funds bolstered sentiment and helped Asian shares erase losses. Treasury yields eased.
China’s indexes bounced off lows after state-related funds stepped in to ensure market stability, according to people familiar with the matter. Nasdaq 100 futures contracts outperformed a rally in U.S. futures. The tech gauge tumbled almost 3% Monday and is now down 11% from a February record. The S&P 500 shed intraday gains as the retreat in high-valuation stocks offset a rise in financial and materials shares.
Locally the JSE Top 40 gained 0.19% as Gold Miners led the way higher, ANG, HAR and GFI the top gainers, gaining 6.06, 3.43 and 3.23 percent respectively. NPN and Prosus lost 2.58 and 2.61 percent at global Tech stocks slid. The Rand has slipped from a twelve month high as recently as the 24th of February to and eight week low touching R 15.55/ $, thus down 5.51% year to date. We in for a positive start this morning with a bounce in Asia, US Futures going higher and Tencent rallying up 1.02%. IG Markets Top is up 411 points.
Data will probably show the South African economy still contracted from a year earlier in the three months through December, even as it’s expected to show strong quarter-on-quarter annualized expansion.
ECONOMIC DATA & EVENTS:
11:30am: 4Q GDP Annualized QoQ, est. 5.6%, prior 66.1%
11:30am: 4Q GDP YoY, est. -4.6%, prior -6%
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• Upbeat Chinese Data May Not Ease Emerging-Market Taper Gloom
• Sibanye Says AngloGold, Gold Fields Fit Acquisition Strategy
• South Africa’s Old Mutual Slips After Warning of 80% Profit Drop
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• Walmart’s South Africa Retailer Scales Back to Fuel Recovery
• AngloGold Raised to Hold at HSBC; PT 355 rand
European stocks closed higher Monday, as global investors monitored progress toward a U.S. Covid relief bill against the backdrop of rising bond yields. The pan-European Stoxx 600 closed up 2.2%, with banks adding 3.7% to lead gains as almost all sectors and major indexes advanced. Germany’s DAX index rose 3.3% and hit a new intraday high.
Overnight the Dow rallied more than 300 points on investor optimism about the economic comeback from the pandemic. At its session high, the 30-stock average jumped 650 points to hit an intraday record. Technology stocks, meanwhile, continued their recent weakness as the Nasdaq Composite dropped 2.4%. The tech-heavy benchmark closed more than 10% below its Feb.12 closing high, falling into correction territory. The S&P 500 also ended the day down about 0.5%, dragged down by shares of Tesla, PayPal, Etsy and Advanced Micro Devices. Futures this morning are higher with the Nasdaq contract up 1.27 %, the DOW up 0.635 and the S&P 500 up 0.81%.
Asia-Pacific markets traded mixed after starting the week by struggling for gains in what some analysts have described as a fragile environment for stocks. The ASX 200 is up 0.47%, the Nikkei has erased early losses and is up 0.80% and the HangSeng leads the way up 1.12% with Tencent up 1.02%.
The spike in oil prices has focused attention on how the steady rise in energy costs is threatening to create a drag on the global economic recovery and stoking fears of inflation. After surging more than 30% this year on coordinated supply constraints by major exporters and demand returning from the depths of Covid-19 crisis, a missile attack Sunday on a key Saudi Arabian export facility sent Brent crude, the international benchmark, above $70 a barrel for the first time since January 2020. While prices have since pulled back, the impact on inflation and the overall global recovery depends on how sustained the underlying rally proves to be.
Gold has bounced off a nine month low of yesterday and is up $ 5.53 or 0.33% at 1689, Platinum is up 1.00% and Palladium up 0.7%.