Daily Report 28 September 2021

SA Company News:

The JSE closed at 64 194 up 0.23%. Momentum Medical Scheme will hold off contribution increases until September next year as there are still many unknowns on how Covid-19 will affect future claims. Adapt IT, published its 2021 financial results where the company stated revenue for the year increased to R1.503 billion compared to 2020 of R1.483 billion and confirmed that Huge Group sold its 1.9% minority stake in the company.

SA Economy:

SA has officially exited its third wave of coronavirus infections, according to the National Institute for Communicable Diseases. Yields on the country’s 10-year bonds, which move inversely to the price, reached their highest level since May. The 12-basis point increase in the yield to 9.325% was the most since June, with local assets also put under pressure by oil at two-year highs and Europe facing an energy crisis.

Global Economy:

The yields on US 10-year treasury notes hovered at 1.5079% in early trade, the highest since June.  US durable goods surged 1.8% month-on-month in August of 2021 beating market forecasts of a 0.7% increase. Power shortages in China have halted production at numerous factories including many supplying Apple and Tesla. China’s central bank vowed to protect consumers exposed to the housing market by injecting more cash into the banking system. This move is seen as a sign that the authorities are willing to support the financial system and avoid a big collapse and contagion due to property developer Evergrande.

Global Company News:

Asian-Pacific markets traded mixed as investors weighed the imminent start of central bank tapering and what higher energy prices might mean for inflation. Stocks in China rose 0.5% and Hong Kong was up 1.5%. The FTSE 100 edged up 12 points or 0.2% to 7,063 on Monday as energy stocks followed higher oil prices. The Dow Jones gained more than 70 points to close at 34 869 and the S&P fell 13 points to 4 443. Rising bond yields prompted a shift from growth to cyclical stocks in the US.

Commodities:

Brent crude climbed almost 1% to $80 per barrel. Gold is often considered a hedge against higher inflation, a rate hike would increase the opportunity cost of holding gold, which pays no interest.

Gold price is trading 0.48% lower this morning at $1743.

Platinum dropped 0.5% to $976.07, while palladium was down 0.6% at $1,952.44.

Cryptocurrencies.

Bitcoin was trading around $44,000, having largely recovered over the weekend from a plunge below $40,000 that came in reaction to news that China now deemed all financial transactions involving cryptocurrencies illegal.

Currencies:

The rand declined to R15.06/$. EUR / USD 1.1694.

Brent Oil Futures
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Gold Futures
Top 40 Futures

Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1748.25 (-0.41) USD/ZAR 14.92 Top40 57784.27 (+0.25)
Platinum 980.10 (-1.24) GBP/ZAR 17.46 Dow 30 34869.37 (+0.20)
Brent 79.62 (+1.65) EUR/ZAR 20.45 S&P 500 4443.11 (-0.28)
Copper 4.29 (+0.00) EUR/USD 1.1696 FTSE 7063.40 (+0.17)
Palladium 1941.00 (-1.31) USD/JPY 111.22 DAX 15573.88 (+0.27)
Iron Ore 115.00 (+5.22) BITCOIN 42385.60 Shanghai 3598.32 (+0.19)
Source:  Investing.com