14/06/2021 All eyes were on Cornwall and the G7 meeting over the weekend. President Joe Biden entered his first international summit looking for a breakthrough on vaccine pledges for low-income countries, a united front on China and to tee up his meeting this week with Russian President Vladimir Putin. Biden left the U.K. on Sunday after a meeting with Group of Seven leaders who took pains to show unity, even in cases where they found themselves quietly at odds. Biden clamoured for a crackdown on China before settling for a more modest condemnation, and emerged having quelled complaint. Wednesdays meeting with Pres Putin should be interesting.
Elsewhere, Bitcoin jumped over the weekend after Elon Musk said Tesla would resume transactions with the cryptocurrency when mining it is done with more clean energy.
Locally, the JSE All Share closed up 0.11% to end the week just down 0,15 percent. Mining stocks raced higher on Friday morning, while domestically focused stocks were lower amid the surge in new Covid-19 infections. The Rand had its worst week since February, closing the week with a 1.9% loss against the dollar as some fears still remain about rising inflation as economies across the globe build towards pre-pandemic levels. The Rand is trading flat this morning at R 13.73/$ and R 19.38/GBP.
South Africa will dispose of 2 million Johnson & Johnson Covid-19 vaccines following a U.S. ruling that ingredients for the country’s doses may have been contaminated during production in a plant in Baltimore, according to President Cyril Ramaphosa.
• Ramaphosa on Economic Reform Roll Bolsters South African Markets.
• G-7’s 1 Billion Pledge for New Vaccine Doses Comes Up Short.
• South Africa Signs Plan to Support $44 Billion Steel Industry.
• South Africa Sells State Airline to Private-Equity Venture.
• Anglo’s Coal Retreat May Boost South African Fossil-Fuel Output.
• Moneyweb: Asset managers slam Naspers, Prosus.
The Week Ahead :
• NATO holds a summit on Monday
• An EU-U.S. summit takes place in Brussels on Tuesday
• Data on U.S. industrial production, producer prices and retail sales come Tuesday
• The Federal Open Market Committee rate decision comes on Wednesday, with a news conference from Jerome Powell after
• U.S. President Joe Biden and Russia’s Vladimir Putin meet Wednesday in Geneva
• U.S. Treasury Secretary Janet Yellen testifies before a House panel Thursday on the federal budget
• Rate decisions come from Switzerland and Norway on Thursday
• The Bank of Japan’s monetary policy decision is on Friday.
European markets climbed to record highs on Friday as traders shrugged off a sharp rise in U.S. inflation, with many strategists believing it to be transitory. The pan-European Stoxx 600 added 0.7% by the close, notching its sixth consecutive session of gains. All sectors finished in positive territory, led by basic resources which rose 1.9%. For the week, the Stoxx 600 benchmark rose by 1.1%. FTSE +0.65%, CAC +0.83%, DAX +0.78%
In the US, U.S. stocks traded higher with the S&P 500 adding to its new record. The U.S. Labour Department reported a 5% annual increase in its headline consumer price index on Thursday, its fastest rise since 2008. Core inflation, which excludes food and energy prices, rose 3.8% to notch its sharpest increase in nearly three decades. Last week, the Dow fell 0.8%, but the S&P 500 rose 0.4%, for its third straight positive week. The Nasdaq was the outperformer with a gain of nearly 1.9%, posting its fourth winning week in a row as the tech trade came back into favour. The Fed’s two-day policy meeting will likely dominate investor behavior this week. Although the central bank is not expected to take any action, its forecasts for interest rates, inflation and the economy could move the markets.
Shares in Asia-Pacific were mixed in Monday trade, with multiple major markets in the region closed for holidays. The Nikkei 225 rose 0.6% while the Topix index gained 0.26%. Official data released Monday showed Japan’s seasonally adjusted index for production rising 2.9% in April from the previous month. MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.17% lower. Markets in Australia, mainland China and Hong Kong are closed on Monday for holidays.
Gold prices fell to a more than one-week low this morning, weighed down by a stronger dollar as focus turns to the Federal Reserve policy meeting this week with recent spikes in U.S. consumer prices seen as a temporary blip. Gold is trading down 0.71% at $ 1864, Platinum down 0.28% at $ 1147 and Palladium down 0.12% at $ 2773.
Oil prices held near multi-year highs this morning, underpinned by an improved outlook for demand as increased COVID-19 vaccinations help lift travel curbs. Vehicle traffic is returning to pre-pandemic levels in North America and much of Europe and more planes are in the air as lockdowns and other restrictions are being eased, driving three weeks of gains for the oil benchmarks. OPEC+ need to increase output to meet recovering demand, the International Energy Agency (IEA) said in its monthly report on Friday.