08/11/2021 Stocks in Asia are as investors keep watch on how price pressures impact monetary policy and the pace of economic recovery. Equities edged lower in Japan, Hong Kong and South Korea. U.S. futures dipped after all major U.S. equity benchmarks climbed to records on Friday, with the S&P 500 posting its fifth consecutive weekly rally. That was after a larger-than-forecast and broad-based gain in U.S. payrolls that also showed a jump in average hourly earnings. The S&P 500 marked its 64th new high of the year, ending the week up 2.03% on strong earnings, positive labor market readings, and the Federal Reserve’s wholly expected taper announcement. Meanwhile, in Europe, the FTSE 100 rose 0.97% following the Bank of England’s unexpected decision to keep rates unchanged.
Locally the JSE All-Share fell 0.49% while the Rand strengthened against the dollar despite the US adding 531,000 new jobs in October, from an expected 450,000 and has dipped below $ 15/$ this morning trading at R 14.97/$ and R 20.19/GBP. MTN led the gainer sclosing up 13.15% after the company said it intends to make a takeover approach for Telkom. Eskom announced on Sunday that it will continue cutting 2,000 megawatts from the nationwide grid from 5am Monday until 5am on Nov. 13. We should see a lower open this morning with Asia softer, US futes a tad lower and Tencent down 1.50%. IG Top 40 Index – 109 points.
• MTN Is Said to Make Takeover Approach for South Africa’s Telkom.
• South Africa Takes Step Toward Building Potential Gas Import Hub.
• Gold Climbs After U.S. Jobs Growth Outpaces Expectations.China’s October Exports to South Africa +29.4% Y/y, By Country.
• ANGLOGOLD 3Q GOLD AISC PER OZ $1,362, +35% Y/Y.
• ARC FUND OFFERS 35 CENTS/SHARE FOR CSG
What to watch this week:
• China’s Communist Party’s decision-making Central Committee starts meeting Monday.
• Through Nov. 11.Federal Reserve Bank of San Francisco President Mary Daly speaks Tuesday.
• China aggregate financing, money supply, new yuan loans Tuesday.
• China PPI Wednesday.U.S. wholesale inventories, CPI, initial jobless claims Wednesday.
• U.S. bond marked is closed in observance of Veterans Day Thursday.
• China holds its annual Singles’ Day, the world’s biggest shopping festival, when e-commerce giants like Alibaba and JD.com Inc. lure buyers with bargains Thursday
European stocks are expected to open near the flatline on Monday, lacking clear direction at the start of the new trading week. The U.K.’s FTSE index is seen opening 1 point lower at 7,305, Germany’s DAX down 8 points at 16,031, France’s CAC 40 higher by 6 points at 7,037 and Italy’s FTSE MIB down 10 points at 27,613, according to data from IG.
In the US, the three major U.S. stock averages each closed at record highs Friday to cap off a winning week. The Dow rose 203.72 points, or nearly 0.6%, in its sixth-straight position day. The S&P 500 gained 0.4% for its seventh winning session in a row. The Nasdaq added 0.2% to post its tenth consecutive positive session. The rally came after the October jobs report came in better than economists had expected. U.S. payrolls added 531,000 jobs last month, according to the Labour Department. Friday’s report also revised up September and August payroll numbers.
Shares in Asia-Pacific were mixed in Monday trade as investors react to China’s trade data released over the weekend. Official data released over the weekend showed China’s exports surging 27.1% in October as compared with a year ago. That was higher than the 24.5% growth forecast by analysts in a Reuters poll. MSCI’s broadest index of Asia-Pacific stocks outside Japan slipped 0.24%.
Gold rose more than 1% on Friday to a near two-month high as major central banks’ dovish tone on interest rates this week lifted the demand for the safe-haven metal. Spot Gold + 0.2% $ 1820, Plat + 0.82% $ 1044 and Palladium + 0.48% $ 2049.
Oil prices are higher after Saudi Arabia’s state-owned oil producer Aramco raised the official selling price for its crude, suggesting demand remains strong at a time of tighter supplies. Brent + 1.31% $ 83.66, WTI + 1.24% $ 82.28.