Asia Stocks Dip Amid China Risks; Oil Extends Gain

16/09/2021 Asian stocks are lower as the debt crisis at China Evergrande Group and Beijing’s latest push to rein in private industries hurt sentiment. An onshore real estate unit of Evergrande , the world’s most indebted developer and one of the biggest financial worries in China has suspended trading in its bonds. Authorities have begun laying the groundwork for a possible Evergrande debt restructuring. Oil extended a powerful rally amid broad gains in energy commodities and is at a six-week high. US Futures are slightly lower.
Locally the JSE staged a late come after been in the red most of the session, the ALL Share closed up 0.13% with SOL the top gainer up 4.83%. the ZAR lost 1.66 % to the Dollar to trade at R 14.46/$. We should be in for another lower open, we will have to contend with softer Asian markets, Geo-political tension between North and South Korea as well as Japan having their input and Tencent again down 1.5 percent. US Futures are lower and IG Top 40 is 86 points lower.
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European markets are set to open cautiously higher after a softer session yesterday, FTSE – 0.25%, CAC – 1.04% and the DAX lost 0.68%. IG Futures have the in’s FTSE 100 is around 20 points higher at 7036, the DAX is expected to add around 32 points to 15658 and the CAC 40 is set to climb around 22 points to 6,606. In other news, U.K. Prime Minister Boris Johnson on Wednesday reshuffled his Cabinet, replacing a number of senior ministers and urging his government to tackle economic inequality in the aftermath of the pandemic. On the data front, August car registrations for Germany, France, the U.K., Italy and the Netherlands are due Thursday, along with Italian and euro zone trade balance figures.
In the US, the S&P 500 gained 0.9% with a 3.8% jump in the energy sector, posting its biggest daily increase since Aug. 27. The Dow advanced more than 200 points, while the tech-heavy Nasdaq Composite rose 0.8%. So far this month, the 30-stock Dow is down 1.6%, while the S&P 500 has declined 0.9%, on track for its worst monthly performance since January. The Nasdaq has fallen 0.6% this month. Investors will monitor the latest jobless claims data later today. Economists polled by Dow Jones expect a total of 320,000 Americans filed for unemployment insurance in the week ended Sept.11, slightly up from 310,000 in the week prior.
Asian markets are mostly in the red with the Ozzie ASX 200 bucking the trend, trading up 0.58% after Australia’s unemployment rate decreased to 4.5% on a seasonally adjusted basis in August, lower than the 4.9% forecast in a Reuters poll. Still, the Australian Bureau of Statistics attributed the decline to a “large fall in participation during the recent lockdowns” rather than strengthening labor market conditions. The Hang Seng is 1.97% lower with Casino stocks under pressure and Tencent down 1.5%. MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.84%.
Gold prices are lower as cautious investors awaited signals on the US Federal Reserve’s timeline on withdrawal of its pandemic-era stimulus, with analysts expecting a further slide in prices on a formal announcement. The Fed’s open market committee’s two-day policy meeting is due on September 21-22, where the US central bank is expected to provide guidance on when it will start withdrawing its asset purchases and on eventual interest rate hike. Gold Spot is at $ 1785 – 0.49% , Platinum – 0.63% $ 944 and Palladium flat at $ 2010.
Oil prices have kept most of their gains which saw them trade at a six week high, this after a larger-than-expected drawdown in crude oil stocks in the United States. U.S. crude oil and fuel stockpiles dropped sharply last week, as refiners in the U.S. Gulf region and oil facilities offshore were still recovering from Hurricane Ida, the Energy Information Administration (EIA) said yesterday. Crude inventories fell by 6.4 million barrels in the week to Sept. 10 to 417.4 million barrels, the EIA said, compared with expectations in a Reuters poll for a 3.5 million-barrel drop.