2 June 2020

Morning All.

The JSE closed 0.9 % higher yesterday, tracking global markets as optimism about the reopening of economies and the US’s commitment to the US-China trade deal lifted sentiment. “While US President Trump levelled plenty of criticism on China and went as far as to strip Hong Kong of its ‘Special Status’, he didn’t formally escalate tensions with China.

We are looking for the local market to open on a positive note in-line with Asian markets despite US Futures trading a little softer.

South African Reserve Bank Governor Lesetja Kganyago participates in South African Chamber of Commerce U.K. webinar entitled ‘The COVID-19 shock: How does the SARB respond?’ 10:15am

  • South Africa Health Care Stocks Fall as Concerns Over NHI Return.
  • South African Vehicle Sales Fall 68% in May From Year Earlier.
  • S. Africa’s Land Bank Confirms Won’t Meet Interest Payments Due.
  • Standard bank Profit expected to drop by more than 20%. Bad loans and impairments may exceed the 2008 levels
  • Bidvest to write down Comair loss

South African fuel costs are set to rise for the first time this year on Wednesday after the price of oil recovered from record lows in May. The retail cost of gasoline will increase by almost 10%, adding to inflation pressures in an economy that imports almost all its fuel. So far this year, lower fuel prices have helped to keep inflation at or below the 4.5% midpoint of the central bank’s target range, providing policy makers with space to cut the benchmark interest rate to the lowest level on record.


  • Mediclinic International (MEI SJ) scheduled to announce FY earnings


  • International Trade Administration Commission briefs lawmakers on its contribution to government’s Covid-19 response
  • U.K. Trade Commissioner for Africa participates in panel on sustaining and promoting U.K.-Africa trade in the post-Covid world.

US Futures are a little softer this morning after Pres Trump threatened to deploy the U.S. military to end “riots and lawlessness” across the country in a Rose Garden address punctuated by the sound of explosions as federal officers dispersed peaceful demonstrators just outside the White House gates. Earlier the markets started June on a positive note following back-to-back monthly gains. The Dow rose about 90 points after a 4.2% gain in May and a 11% rally in April. Meanwhile, the S&P 500 climbed about 0.3% after gaining 4.5% in May and 12.6% the month before. The U.S. labor market report on Friday will probably show American unemployment soared to 19.6% in May, the highest since the 1930s.

European stocks closed higher on Monday as lockdown measures eased across the continent, the FTSE 100 closed 1.5% higher, while France’s CAC 40 climbed 1.4%, Italy’s FTSE MIB gained 1.8% and Spain’s IBEX was up 1.8%. Markets were closed in Austria, Denmark, Germany, Norway, Sweden and Switzerland for a public holiday.

Asian markets trade up across the region, led by the Nikkei uo 1.46%. In Oz, the RBA is due to announce a rate decision, the ASZ 200 is up 0.66% but the AUD Metals and Mining index is 0.16% lower. RIO -0.12%, BHP -0.62%. the Hang Send trades up 0.54% with Tencent up 0.61%. Overall, the MSCI Asia ex-Japan index rose 0.43%.

Oil prices rose in early trade, with traders waiting to see whether major crude producers agree to extend their huge output cuts to shore up prices at a meeting expected later this week. OPEC++ (meeting on the 4th June ) are considering extending their production cut of 9.7 million barrels per day (bpd), or about 10% of global output, into July or August, at an online meeting likely on June 4, which has helped prop up prices this week.

Have a good