30/09/2021 Stocks pared most of their gains into the close as a rally in technology companies fizzled out. The Nasdaq 100 notched its third straight day of losses after earlier climbing about 1%. Dip buyers helped push the S&P 500 higher, with defensive industries such as utilities and consumer staples among the best performers. The dollarrose to the highest level since November 2020, while Treasuries were little changed.
President Joe Biden and his aides scrambled to break a deadlock among Democrats that has stalled progress on his economic plans as the White House and Congress are staring down deadlines to keep the government running and avoid a default. Federal Reserve Chair Jerome Powell voiced cautious optimismthat supply-chain disruptions lifting inflation would ultimately prove temporary.

The JSE closed firmer on yesterday, tracking European and US markets that cast aside fears of sustained inflation, supply-chain breakdowns and the US approaching its debt limit. The All share was up 0.91% with MTN up 5.00 %. We should be in for a firmer start today despite Asia being mixed, Tencent 0.17 % lower. US Futures are pushing higher and IG Top 40 is up 370 points. Cape Town Stock Exchange officially begins trading. The bourse aims to provide financing to smaller, fast-growing companies in what it estimates as a $2 trillion market. CTSE is able to list companies at a third of the price of the Johannesburg Stock Exchange, the oldest and biggest board in Africa.

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European stocks are expected to open higher, unperturbed by declines in Asia-Pacific overnight and U.S. markets on yesterday.The solid open expected for European markets comes amid declines elsewhere; overnight in Asia-Pacific, shares traded mixed as investors reacted to the release of Chinese factory activity data for September. China’s official manufacturing Purchasing Managers’ Index for September came in at 49.6, below expectations for a reading of 50.1 by analysts in a Reuters poll. PMI reading below 50 represent contraction while those above that level signify expansion. Later today, investors in Europe will be keeping an eye on a number of important data releases including the latest U.K. quarterly GDP figures, French consumer spending data, Spanish retail sales data, German and Italian unemployment numbers and preliminary consumer price inflation data from France, Germany and Italy. The euro zone also releases its latest unemployment data.
Overnight in the US the Dow advanced about 90 points for its fifth positive session in the last six, while the S&P 500 gained 0.16%, breaking a 2-day losing streak. The Nasdaq Composite, meanwhile, declined 0.24% for its fourth straight negative session. The technology sector declined again on Wednesday and is now down 4% for the week, making it the worst-performing S&P group. Investors are also monitoring the latest headlines out of Washington. On Wednesday the House passed a bill that would suspend the U.S. debt ceiling after Treasury Secretary Janet Yellen told House Speaker Nancy Pelosi on Tuesday that Congress had until Oct. 18 to raise or suspend the debt ceiling. On the data front, initial jobless claims for the prior week will be released. Economists are expecting a print of 335,000. The Bureau of Economic Analysis will also release its third estimate for Q2 GDP later today.
Shares in Asia-Pacific are mixed as investors reacted to the release of Chinese factory activity data for September. Mainland Chinese stocks advanced, with the Shanghai composite up 0.37% while the Shenzhen component jumped 1.422%. Hong Kong’s Hang Seng index, on the other hand, fell 0.86%. China’s official manufacturing Purchasing Managers’ Index for September came in at 49.6, below expectations for a reading of 50.1 by analysts in a Reuters poll. Hong Kong-listed shares of developer China Evergrande fell more than 4% by Thursday afternoon in the city as Reuters reported that some bondholders did not receive a due coupon payment by the close of Asia business hours on Wednesday. Tencent is down 0.17%
Gold prices inched up on this morning but hovered near a seven-week low, constrained by a strong dollar and expectations of the U.S. Federal Reserve winding down stimulus measures soon. Spot Gold + 0.19% $ 1729, Platinum + 0.25% $ 956 and Palladium + 0.07% $ 1880.
Oil prices are lower this morning, extending losses after official figures showed an unexpected rise in inventories in the United States although prices seem to have stabilized following a recent run of gains. U.S. oil and fuel stockpiles increased last week, the U.S. Energy Department’s Energy Information Administration (EIA) said yesterday. Crude inventories were up by 4.6 million barrels in the week to Sept. 24 to 418.5 million, compared with analysts’ expectations in a Reuters poll for a 1.7 million-barrel drop. Brent – 0.37% $ 78.35. WTI – 0.15% $ 74.74.