The JSE All Share ended the day 0.4% lower as the rally on World Markets took a breather, BTI ended 4.19% lower after the company further cut sales growth and reduced its forecast for full year revenue growth. We are set for a better opening this morning with Tencent up over 2 % and US and European futures both positive. IG markets have the Top 40 up 115 points.
A South Africa court is due to hear the case brought by the Fair Trade Independent Tobacco Association against the government’s ongoing ban on the sale of tobacco products.
- Edgars Owner Looking for Buyers to Rescue South African.
- RetailerSteinhoff Pays for PwC to Help South African Police Graft Probe
- 3:45pm: MultiChoice (MCG SJ), FY.
- 2pm: Sanlam (SLM SJ), 4-month update
- 8am: FNB Wealth and Investments Webinar on economic and investment outlook
- 12pm: 2Q BER Business Confidence, prior 18.
In the US overnight the DOW fell 300 points or 1.1%, snapping a 6-day winning streak, with Boeing losing 5.9%. The S&P 500 lost 0.8%, retreating after briefly turning positive for the year in the previous session. The Nasdaq Composite was the outperformer, closing at an all-time record high, as investors piled back into technology darlings. The index ended up 0.3% but briefly traded above the 10 000 point threshold for the first time ever.
The FED concludes its two day meeting later today with the release of a policy statement and the quarterly summary of economic projection starting 18:30 local time. The Fed will be revealing its first forecast for the economy and interest rates since late last year, as it skipped a forecast in March just as the pandemic forced the abrupt shutdown of the economy.
Major bourses in Europe look set to open higher after yesterday’s sell off across the region. London’s FTSE is seen opening 18 points higher at 6,356, Germany’s DAX is seen 63 points higher at 12,706 while France’s CAC 40 is expected to open 30 points higher at 5,126 and Italy’s FTSE MIB up 154 points at 20,037, according to IG.
Asian markets are a little mixed as Chinese inflation data for May missed expectations. The Producer Price Index for May fell 3.7% from a year earlier, according to China’s National Bureau of Statistics. That was a larger decline that the 3.3% fall expected by analysts in a Reuters poll. Besides China mainland trading lower, the Nikkei and Hang Seng have turned positive, up 0.37 and 0.24% respectively. 700HK up 2.35%. Ozzie markets up 0.36%. Overall, the MSCI Asia ex-Japan index added 0.19%.
Oil falls as U.S. inventory rise revives oversupply concerns, Brent – 1.26% $ 40.66, WTI – 1.41% $ 38.39.
Gold extended gains this morning after it’s best session in a month yesterday as global equity markets eased after the recent rally, and U.S. Treasury yields dropped ahead of the outcome of the Federal Reserve’s meeting that is expected to shed light on the state of the economy and further stimulus. Gold $ 1718.
Have a great day.