Daily Report 01 October 2021

SA Company News:

The JSE All Share closed 0.13% lower at 64 281. In an update from Pick n Pay, the company stated it lost R1.7bn in sales due to unrest and restrictions on liquor sales. The group will release interim results for the period ended 29 August 2021 on 20 October 2021. Capitec grew its client base by 15% from the 14.68 million people reported a year ago due to increased investment in digital platforms.

SA Economy:

Producer prices in South Africa advanced by 7.2% from a year earlier in August of 2021 up from 7.1% in July. Local shares could benefit from SA’s move to level 1 restrictions, announced by President Cyril Ramaphosa.

Global Economy:

The American economy grew at an annual 6.7% in the second quarter of 2021, higher than the estimate of 6.6%. The number of Americans filing new unemployment benefits rose for a third straight week to 362 000 in the week ending September 25th. Consumer prices in Germany advanced 4.1% year-on-year in September, raising fears of strong inflationary pressure in Europe’s largest economy. India’s Manufacturing PMI increased to 53.7 in September 2021 from 52.3 indicating a stronger expansion in the overall business environment. Asia’s manufacturing activity stagnated in September due to pandemic-induced factory shutdowns and signs of slowing Chinese growth.

Global Company News:

Hong Kong is closed for a holiday, while markets in China were shut for the Golden Week holiday until October 7th. The Dow Jones Industrial Average dropped 546.80 points, or 1.59%, to close at 33 843. The broader S&P 500 was down 1.19% to 4 307. The weakness for the market came from rising rates, inflation fears and concerns about the Chinese property market. European stocks dropped more than 1% on the first trading day of October, following a sharp sell-off in the US and Asia.

Commodities:

Brent crude was down 1.36% to $77.50 a barrel. OPEC may step up a planned increase in output to ease supply concerns as the cartel is scheduled to meet next week Monday. Spot gold eased 0.2% to $1.753.21/oz. Platinum gained 0.4% to $954.31, and Palladium climbed 1.8% to $1.891.

Currencies:

The rand weakened 0.4% to $15.13$. US Dollar stays near a one year high at EUR/USD 1.1584.

Brent Oil Futures
.
Gold Futures
Top 40 Futures

Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1752.75 (+1.36) USD/ZAR 15.10 Top40 57863.40 (-0.27)
Platinum 959.95 (+0.80) GBP/ZAR 20.32 Dow 30 33843.92 (-1.62)
Brent 78.45 (+0.82) EUR/ZAR 17.49 S&P 500 4307.54 (-1.21)
Copper 4.07 (-2.95) EUR/USD 1.1579 FTSE 7086.42 (-0.31)
Palladium 1886.00 (+1.46) USD/JPY 111.25 DAX 15260.69 (-0.69)
Iron Ore 110.00 (+2.73) BITCOIN 43935.40 Shanghai 3568.17 (+0.09)
Source:  Investing.com