30/07/2021 U.S. equity futures and Asian stocks slid Friday as traders weighed signs of a slowdown ahead for megacap technology companies and risks from China’s regulatory crackdown. Stocks fell in Hong Kong and China as well as Japan. Nasdaq 100 contracts shed more than 1% as Amazon.com Inc. tumbled in extended trading on indications its rapid growth through the pandemic is waning. Asia-Pacific stocks had jumped Thursday after Beijing tried to allay fears over regulatory curbs on private industries, but U.S.-listed Chinese equities later resumed declines.
Elsewhere, Robinhood Markets Inc. ended its first day as a public company 8.4% below its initial public offering price after failing to win over some of the very retail investors it’s courting for long-term growth. Bitcoin continued to trade around $40,000, maintaining its recent rebound.
Locally, the All Share closed up 1.52% at an all-time high of 69565. Anglos led the gainers closing up 4.37% after numbers yesterday and announcing they would return a whopping $ 4.1 bln to shareholders. Naspers and Prosus gained 4.08 and 3.93 percent respectively after Tencent had rallied 9 % earlier. We going to see the local market open under pressure as Asia trades down, Tencent is down 4.47% as Chinese Tech names fall again and US and European Futures trade lower. IG Top 40 Index is down 644 points.
South Africa probably posted a trade surplus of 54 billion rand in in June, compared with 54.6 billion rand the previous month, according to the median estimate of economists in a Bloomberg survey. The country has reported 13 straight monthly surpluses through May. The data is due at 2pm.
• South Africa Stocks Hit Record on Anglo’s Bumper Profit
• South Africa’s Covid-19 Vaccine Target Boosted to 420,000 a Day
• S. AFRICA’S SUSPENDED HEALTH MINISTER MKHIZE OWES 4M RAND
• GOLD FIELDS SEES 1H HEPS MORE THAN DOUBLING
• GOLD FIELDS 1H ALL-IN SUSTAINING COSTS $1,093 VS $987 Y/Y
European stocks closed higher on Thursday as investors digested a fresh round of major corporate earnings and the U.S. Federal Reserve’s reiteration of its dovish policy stance. The pan-European Stoxx 600 closed up about 0.5%, with basic resources and autos shares leading the gains, climbing 2.4% and 2% respectively. Thursday’s European trading session was guided by another bumper day for corporate earnings. Credit Suisse, Royal Dutch Shell, TotalEnergies, Volkswagen and Airbus are just some of the big names reporting results. Shell and Total were the stand out beats.
In the US, the Dow gained 153 points on after reaching a new intraday high, the S&P 500, which also briefly touched an all-time high, finished the day up 0.4% at 4,419.15 and the tech-heavy Nasdaq underperformed with a 0.1% gain, kept in check by a 4% drop in Facebook shares after the social media company’s earnings report. Amazon equity sank 7.4% in extended trading after it reported its first quarterly revenue miss in three years and gave weaker guidance. The move in Amazon’s stock is weighing on Nasdaq 100 futures which are down 1.3 % also been taking lower by further selling in Chinese Tech names listed in the US. Overnight gains added to an otherwise healthy month for the Dow, S&P 500 and Nasdaq. The Composite and Dow have added 1.89% and 1.69% in July, while the broad S&P 500 is up 2.83% over the same period. Utilities, health-care, real estate and technology stocks have led the S&P 500 higher for the month, while energy and financials have lagged.
In Asia the volatile trading continued for Chinese stocks, as losses were seen again a day after they clawed back some gains following a dive early this week. The Hang Seng tumbled more than 2% by the afternoon. Declines were seen in tech stocks after they had jumped on Thursday. Alibaba tumbled 5.5%, Tencent was down 4%, and Meituan dived more than 8%. The Hang Seng Tech index overall lost more than 4%. MSCI’s broadest index of Asia-Pacific shares outside Japan lost more than 1%.
Oil prices are lower but were on track to post solid gains for the week with demand growing faster than supply, while vaccinations dampen the impact of a resurgence in coronavirus cases worldwide. Brent – 0.68% $ 75.53, WTI – 0.80% $ 73.01
Gold prices held near a two-week high on Friday, and were set for their biggest weekly gain in more than two months, on renewed signs that the U.S. Federal Reserve may not taper economic support and hike interest rates in the near term. Spot Gold is a tad lower at $ 1826, Platinum – 0.63% at $ 1057 and Palladium up 0.26% at $ 2665.
Have a great day and even a better weekend, go Bokke