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Market Review, Commodities, Currencies, Economic & Corporate Update - 11.12.23

Published 2023/12/11, 08:49
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SOUTH AFRICA MARKET REVIEW

  • South African markets closed in the red on Friday, amid losses in mining sector stocks.
  • Diversified miners, Anglo American (JO:AGLJ), Kumba Iron Ore (JO:KIOJ) and Exxaro Resources (JO:EXXJ) plunged 13.3%, 1.8% and 1.2%, respectively.
  • Lenders, RMB Holdings (JO:RMHJ), Nedbank Group (JO:NEDJ) and Capitec Bank Holdings (JO:CPIJ) declined 1.8%, 1.2% and 0.8%, respectively.
  • On the flipside, retailers, Cie Financiere Richemont S.A. (JO:CFRJ), Mr Price Group (JO:MRPJ) and SPAR Group (JO:SPPJ) advanced 3.0%, 1.5% and 1.0%, respectively.
  • Property developers, Equites Property Fund (JO:EQUJ), Emira Property Fund (JO:EMIJ) and Shaftesbury Capital gained 1.8%, 1.4% and 1.2%, respectively.
  • Telecommunications companies, Vodacom (JO:VODJ) and MTN (JO:MTNJ) added 1.1% and 0.6%, respectively.
  • The JSE All Share index declined 1.3% to close at 73,790.85.

UK MARKET REVIEW

  • The UK market finished firmer on Friday, boosted by gains in energy sector stocks.
  • Retailers, Burberry Group (LON:BRBY), Ocado Group (LON:OCDO) and J Sainsbury (LON:SBRY) jumped 2.5%, 2.0% and 1.6%, respectively.
  • Banking firms, Barclays (LON:BARC), Lloyds Banking Group (LON:LLOY), HSBC Holdings (LON:HSBA) and NatWest Group (LON:NWG) advanced 2.2%, 1.4%, 1.1% and 1.0%, respectively.
  • Insurance companies, Prudential (LON:PRU) and Admiral Group (LON:ADML) gained 1.8% and 0.9%, respectively.
  • Energy companies, BP (LON:BP) and Shell (LON:RDSa) rose 1.7% and 1.6%, respectively, on higher crude oil prices.
  • On the other hand, miner, Anglo American (LON:AAL) plunged 19.0%, after the company announced plans to cut its capital expenditure by $1.80bn by 2026 and to reduce production at its South African unit Kumba Iron Ore.
  • The FTSE 100 index advanced 0.5% to close at 7,554.47.

US MARKET REVIEW

  • US markets ended higher on Friday, as investors assessed stronger than expected US jobs report.
  • Media and entertainment companies, Paramount Global (NASDAQ:PARA) and Warner Bros Discovery Group (NASDAQ:WBD) surged 12.1% and 6.0%, respectively.
  • Financial services companies, Goldman Sachs Group (NYSE:GS) and JPMorgan Chase (NYSE:JPM) advanced 1.8% and 1.1%, respectively.
  • Energy companies, Devon Energy Corporation (NYSE:DVN), Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM) gained 1.5%, 1.3% and 1.2%, respectively.
  • Technology companies, Intel (NASDAQ:INTC), International Business Machines (NYSE:IBM) and Microsoft (NASDAQ:MSFT) rose 1.3%, 1.1% and 0.9%, respectively.
  • The S&P 500 index rose 0.4% to settle at 4,604.37, while the DJIA index advanced 0.4% to close at 36,247.87.
  • The NASDAQ index climbed 0.4% to end the trading session at 14,403.97.

ASIA MARKET REVIEW

  • Asian markets are trading mostly lower this morning, ahead of major central bank meetings due this week.
  • In Japan, pharmaceutical company, Sumitomo Pharma (TYO:4506) has advanced 3.9%.
  • On the flipside, electronics company, Renesas Electronics (TYO:6723) has eased 0.8%.
  • In Hong Kong, life insurance company, China Life Insurance (HK:2628) shed 3.7%.
  • On the other hand, consumer electronics company, Lenovo Group (HK:0992) has gained 3.7%.
  • In South Korea, pharmaceutical company, Kukje Pharma (KS:002720) has dropped 4.5%.
  • On the contrary, construction company, Bumyang Construction (KS:002410) has surged 10.8%.
  • The Nikkei 225 index is trading 1.6% higher at 32,817.61.
  • The Hang Seng index is trading 2.2% lower at 15,981.66, while the Kospi index is trading 0.1% lower at 2,515.11.

COMMODITIES

  • At 05:30 SAST today, Brent prices rose 0.3% to trade at $76.1/bl.
  • On Friday, Brent prices rose 2.4% to settle at $75.84/bl, amid hopes for a rise in demand. Additionally, the Baker Hughes reported that the US oil rigs count fell by 2 to 503 in the week ended 8 December 2023.
  • At 05:30 SAST today, gold prices declined 0.2% to trade at $1,999.24/oz. On Friday, gold declined 1.2% to close at $2,003.39/oz, as a stronger dollar and a rise in the US Treasury yields dented demand for the safe haven yellow metal.
  • On Friday, copper rose 1.6% to close at $8,348.00/mt. Aluminium closed 0.4% lower at $2,133.75/mt.

CURRENCIES

  • On Friday, the South African rand weakened against the US dollar. In the US, non-farm payrolls rose more than expected in November. Moreover, the Michigan Consumer Sentiment Index rose more than expected in December.
  • The yield on benchmark government bonds rose on Friday. The yield on the 2030 bond advanced to 10.06% while that for the longer-dated 2040 issue rose to 12.34%.
  • At 05:30 SAST, the US dollar is trading 0.2% higher against the South African rand at R19.0142, while the euro is trading 0.3% higher at R20.4717. At 05:30 SAST, the British pound has gained 0.2% against the South African rand to trade at R23.8463.
  • On Friday, the euro mostly advanced against most of the major currencies. In Germany, the consumer price inflation eased to its lowest level in nearly two and a half years in November.
  • At 05:30 SAST, the euro marginally advanced against the US dollar to trade at $1.0764, while it has gained 0.1% against the British pound to trade at GBP0.8585.

ECONOMIC UPDATES

  • In Germany, the consumer price index (CPI) dropped 0.4% on a MoM basis in November, in line with market expectations and compared to a flat reading recorded in the prior month.
  • In the US, the unemployment rate unexpectedly fell to 3.7% in November, compared to 3.9% recorded in the previous month.
  • In the US, the Michigan Consumer Sentiment Index rose to a level of 69.40 in December, more than market expectations and compared to a level of 61.30 recorded in the previous month.
  • In the US, non-farm payrolls rose by 199.00 K in November, more than market expectations for a rise of 180.00 K jobs. Non-farm payrolls had recorded a rise of 150.00 K in the previous month.
  • In China, the CPI dropped 0.5% on a YoY basis in November, more than market expectations for a drop of 0.2%. The CPI had declined 0.2% in the previous month.
  • In China, the producer price index (PPI) fell 3.0% on a YoY basis in November, more than market expectations and compared to a drop of 2.6% recorded in the prior month.

CORPORATE UPDATES

SOUTH AFRICA

  • Oil on track for seven-week decline: Oil benchmarks were on track for a seven-week decline, their first in half a decade, on worries about a supply surplus and weak Chinese demand, though prices rebounded after Saudi Arabia and Russia lobbied OPEC+ members to join output cuts.

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