Futures Dip; China Tech U.S. Equity Asia Bolsters

31/12/2021 Asian stocks got a fillip Friday from a rally in a Hong Kong technology gauge following a surge in U.S.-listed Chinese shares. U.S. equity futures fell after Wall Street dipped from a record in thin year-end trading, Tencent up 3.02%.

Locally the JSE closed at another record high, ending the session at 73 786 points as investors judged the Omicron variant to be less of a threat to global economic growth than initially feared, boosting sentiment towards higher-yielding emerging market assets. GFI and ANG were the biggest gainers in the Top 40 closing up 3.22 and 2.96 percent respectively. We should be in for a positive close to 2021 as Tencent trades up over 3 percent.
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European markets are set to open lower but with good annual gains across the region, the FTSE and the DAX are on track to see gains of 15% for the year, while the French CAC is close to a 30% gain.
Overnight in the US the Dow shed about 90 points, or 0.3%, to snap a six-day win streak. The S&P 500 dipped 0.3%, falling less than 1% from its record, which it hit in the previous session. And the Nasdaq Composite lost 0.2%. Jobless claims for last week came in lower than expected at 198,000, the Labor Department reported Thursday. Economists surveyed by Dow Jones had projected 205,000. There is no economic data expected on Friday.
Hong Kong stocks led gains among major Asia-Pacific markets, with Chinese tech stocks in the city soaring. Markets in Australia, Hong Kong and Singapore closed early for the final trading day of the year. Elsewhere in Asia, markets in Japan and South Korea were closed on Friday. Shares of Chinese tech firms listed in the city saw big gains, with Alibaba surging 8.19% and Meituan advancing 3.21% while Tencent rose 3.02%. The Hang Seng Tech index gained 3.57% to 5,670.96.
Oil prices are lower but are set post their biggest annual gains in 12 years, spurred by the global economic recovery from the Covid-19 slump and producer restraint, even as infections surged to record highs around the world.On the last day of 2021, Brent crude futures were on track to end the year up 53%, while U.S. crude futures were headed for a 57% gain, the strongest performance for the two benchmark contracts since 2009, when prices soared more than 70%. Brent – 0.06% $ 79.52, WTi – 0.10% $ 76.91
Gold was set for its biggest annual decline since 2015, having fallen 4% so far this year, as economies recovered from the pandemic’s impact, reducing demand for the safe-haven metal. Silver was on track for its worst year since 2014 with a drop of about 12%. Platinum was down nearly 10% while palladium was headed for its biggest yearly decline since 2015 with a 20% slump.
From all of us at Sinayo, thank you all for the support in 2021 and all the very best to you and your families for 2022. Have fun and stay safe.