Daily Report 06 December

SA Company News:

The JSE All Share Index closed 0.3% down at 70 808 on Friday.  The JSE gained 3.2% for the week. Sugar producer Tongaat Hulett said in an update it experienced strong local demand across all sugar businesses and achieved good market share gains. Yet the group expects to report a headline loss of R266m-R242m, from restated earnings of R241m previously, weighed down by hyperinflationary effects and higher input costs in Zimbabwe. Absa Group’s trading update stated it has seen strong credit growth in the 10 months ended 31 October 2021, and now expects headline earnings in its biggest business – the Retail and Business Banking division – to more than double from the previous year. Its share price was 4% higher on Friday.

SA Economy:

Health Minister, Joe Phaahla, said government will meet this week to decide whether more stringent virus restrictions are needed following a surge in cases after the onset of the new omicron variantThird-quarter GDP figures due out tomorrow will be the focus and is expected to indicate the extent of the damage that July’s riots had on an already fragile economy.  A South African high court has dismissed an urgent application to block Shell from proceeding with a seismic survey off the Eastern Cape coast. In response South Africans took to their beaches on Sunday to protest these plans by Shell which they say will threaten marine wildlife. Seismic activity involves air guns from a vessel being blasted into the seabed at 10-second intervals to explore for oil and gas underground, which could lead to seismic drilling. This in turn increases the risk of oil leaks, pollution of the oceans and the destruction of sea life.

Global Economy:

The US economy added the least number of jobs this year 210 000 vs 550 000 expected, the unemployment rate eased more than expected to 4.2%. The US and China will be publishing inflation and foreign trade updates this week. The Reserve Bank of India is scheduled to announce its policy decision on Wednesday, with market expectations that the central bank will keep interest rates on hold. German factory orders plunged 6.9% month-over-month in October 2021.

Global Company News:

US competition authorities are seeking to block Nvidia’s $80 billion bid for British chip technology provider Arm Ltd. The United States Federal Trade Commission said the deal would give Nvidia control over computing technology that competitors rely on. Chinese property developer Kaisa Group failed to persuade bondholders to agree to a $400 million debt swap and warned it might not be able to repay creditors when the bonds it was trying to exchange, mature this week. China Evergrande shares also plunged after the company said there was no guarantee it would have enough funds to meet debt repayments, prompting Chinese authorities to summon its chairman. U.S. stock indexes sharply lower with a broad technology-sector selloff. The Dow Jones Industrial Average fell 0.9% and the S&P 500 fell 1.2%.

Commodities:

Gold is steady at $1783oz, with Platinum down 0.73% to $928/oz. Brent crude was 2.13% firmer at $71.96 a barrel.

Cryptocurrencies:

The heavy selling in technology stocks last Friday extended to cryptocurrencies with Bitcoin prices volatile throughout the weekend. Bitcoin is down 8.84% today to $48 700. It is down 28.17% from its all-time high of $67 802.30 it reached on the 9th of November 2021. Ethereum is down 1.93% today to $4125.80.

Currencies:

The rand traded at R16.09 against the US Dollar, R21.30 against British Pound and R18.21 against the Euro. The Euro is lower this morning to trade at $1.127.

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Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1783,55 0,78% USD/ZAR 16,09 Top40 64307,00 -0,39%
Platinum 928,10 -0,73% GBP/ZAR 21,30 Dow 30 34580,08 -0,17%
Brent 69,91 -0,77% EUR/ZAR 18,21 S&P 500 4538,43 -0,85%
Copper 4,31 0,45% EUR/USD 1,13 FTSE 7122,32 -0,10%
Palladium 1813,50 1,19% USD/JPY 113,04 DAX 15169,98 -0,61%
Iron Ore 99,00 0,00% BITCOIN 53668,00 Shanghai 3597,60 -0,22%
Source:  Moneyweb & Investing.com