Daily Report 25 January 2022

SA Company News:

The JSE All Share Index closed 3.6% lower at 72 164 in a global sell-off driven by factors ranging from higher US interest rates to the Ukraine-Russia crisis. Sibanye-Stillwater scraps a $1bn deal to acquire two Brazilian mines following the assessment of the geotechnical event at Santa Rita. The assessment has concluded that it is reasonably expected to be materially averse to the business, financial condition, results of operations, the properties, assets, liabilities or operations. South32, the diversified global miner, increased manganese production by 7% and saw higher output of premium material while ore sales jumped 9%. MTN has been added to the FTSE/JSE Responsible Investment top 30 index as its ratings on environmental, social and governance (ESG) performance have recently gone up.

SA Economy:

Scientists and medical experts are calling for the government to end the country’s national state of disaster and lockdown regulations, saying that the world is entering a new phase of dealing with the Covid-19 virus and that being on a permanent ‘code red’ is no longer effective. The South African Reserve Bank (SARB) will announce its first interest rate decision of the year on Thursday. Consumers who generate their own electricity, by using solar panels by day and relying on Eskom when the sun goes down, may see a drastic increase in Eskom charges later in the year if energy regulator Nersa gets its way.

Global Economy:

UK Composite PMI edged down to 53.4 in January 2022 from 53.6 in the previous month, missing market expectations of 55.0. Eurozone Services PMI dropped to 51.2 in January 2022 from 53.1 in the previous month and below market consensus of 52.2. UK Prime Minister Boris Johnson faces a crunch week for his leadership as he braces for the outcome of an investigation into a birthday party at Downing Street that breached covid protocols. The Federal Reserve will begin its two-day meeting later today. We wait to hear from Fed chair, Jerome Powell his latest thinking on the economy and interest rates.

Global Company:

US stocks bounced back after a steep sell-off. The Dow Jones closed 0.29% higher after falling more than 1000 points and the S&P 500 also added 0.3%. Investors are also waiting for earnings reports from IBM, Microsoft, Tesla, and Apple this week. The Shanghai Composite fell 2.58% to 3 433 as investors remain on edge.  European stocks are expected to open higher.

Commodities:

Gold is up 0.26% to $1 843/oz, while Platinum is down 0.79 % to $1 028/oz. Brent crude is down 1.6% at $86.21 a barrel.

Currencies:

The rand traded at R15.27 against the US Dollar, R20.60 against British Pound and R17.29 against the Euro. The Euro has weakened against the US Dollar slightly to trade at $1.13.

Brent Oil Futures
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Gold Futures
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Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1843,09 0,26% USD/ZAR 15,27 Top40 65653,00 -2,79%
Platinum 1028,90 -0,79% GBP/ZAR 20,60 Dow 30 34364,50 0,29%
Brent 86,21 -1,60% EUR/ZAR 17,29 S&P 500 4410,13 0,28%
Copper 4,41 -1,11% EUR/USD 1,13 FTSE 7297,79 -2,65%
Palladium 2136,00 1,16% USD/JPY 113,83 DAX 15011,13 -3,76%
Iron Ore 130,00 -2,31% BITCOIN 36005,70 Shanghai 3451,55 -2,10%
Source:  Moneyweb & Investing.com