Wednesday , February 24 2021
Home / Tag Archives: South Africa

Tag Archives: South Africa

It is the ECB’s Turn but Little New to be Said or Done

Overview:  The S&P 500 and NASDAQ gapped higher yesterday to record-levels, and the reflation theme lifted Asia Pacific shares for the third session today.  South Korea, Taiwan, and China led the advance.  Europe's Dow Jones Stoxx 600 gapped higher and is consolidating, seemingly waiting for fresh directional clues from the US, where a small higher opening is anticipated.  The US 10-year yield is steady around 1.08%, while European yields are a little softer.  The US dollar is lower...

Read More »

Darkest Before Dawn

The upcoming economic news is likely to be dreadful, and if it is not dreadful, it will be mostly ignored. This includes the release of the preliminary January PMI figures at the end of the week. Japan is extending its national emergency to another five prefectures, which collectively account for over half of the nation's GDP.  Germany's Merkel, not given to hyperbole, warns that the lockdown may last ten more weeks.  The Dutch do not appear far behind.  England is talking about tightening...

Read More »

Markets Look Past Near-Term Challenges

Overview:  News that the AstraZeneca vaccine was 70% effective but could be enhanced by changing dosage is lifting spirits and boosting equities.  Japan's markets were closed for a national holiday, but all the equity markets in the region advanced and many by more than 1%.  Strong export figures for the first 20 days of November helped lift South Korea's Kospi to almost a record high.  Europe's Dow Jones Stoxx 600 gapped higher traded at a new nine-month high.  US shares are also trading...

Read More »

US Treasury-Fed Dispute Spurs Handwringing but Immediate Market Impact was Exaggerated

Overview:  News that the stimulus talks between the House Democrats and Senate Republicans was the excuse traders were looking for to extend the US equity gains yesterday, but shortly after the close, confirmation that Treasury was not going to agree to extend several Fed facilities sent stocks reeling.  However, the MSCI Asia Pacific Index showed little reaction, and after snapping a 13-day advance yesterday, returned to its winning ways today.  The Nikkei, Taiwan, and Thailand were...

Read More »

ECB Takes Center Stage

Overview: Equities continue to recover even as deep economic contractions are reported. Yesterday, the US said Q1 GDP contracted at an annualized pace of 4.8%, while the eurozone reported today that output fell 3.8% quarter-over-quarter in Q1.  Hong Kong and South Korea were closed, but the rest of the Asia Pacific bourses rallied strongly with several, including Australia and India, rising more than 2%. European shares opened higher before stalling, and US shares are firm after the...

Read More »

Monday Blues

Overview: Risk appetites remain in check as the spread of the coronavirus is leading to more and longer shutdowns.  Asia Pacific equities fell with Australia, the notable exception.  Its benchmark rallied a record 7%, encouraged by additional stimulus measures.  Led by financials, following new that the ECB is requesting banks hold off dividend payments until October (which frees up an estimated 30 bln euros), real estate, and consumer discretionary sectors, the Dow Jones Stoxx 600 is...

Read More »

As the Data Comes In, 2019 Really Did End Badly

The coronavirus began during December, but in its early stages no one knew a thing about it. It wasn’t until January 1 that health authorities in China closed the Huanan Seafood Wholesale Market after initially determining some wild animals sold there might have been the source of a pneumonia-like outbreak. On January 5, the Wuhan Municipal Health Commission issued a statement saying it wasn’t SARS or MERS, and that the spreading disease would be probed. In other words, you can’t blame...

Read More »

US Brandishes Tariff Weapon and Weakens Animal Spirits

Overview: Asia Pacific equities mostly declined in sympathy with yesterday's large sell-off in the US and Europe. China and Taiwan were the notable exceptions, while Australia's 2.2% decline, following the central bank meeting that resulted in what many are seeing as a hawkish hold, led the move lower. Europe's Dow Jones Stoxx 600 fell 1.6% yesterday, the largest loss in two months, and is extending the losses for a third session today. US shares are trading with a lower and a gap...

Read More »

Investor Optimism Carries into the New Week

Overview: Investor optimism is reflected by the risk-taking appetite that is lifting equity markets and bond yields. With Japanese markets closed for a national holiday, the MSCI Asia Pacific Index was led higher by more than 1% gains in Hong Kong, Taiwan, South Korea, and Thailand. The regional benchmark advanced for the seventh session in the past eight and is approaching the year's high. European shares extended their rally, and the Dow Jones Stoxx 600 has risen in nine of the...

Read More »

South African gold loses its luster as miners eye Ghana, palladium

South Africa has some of the world’s biggest reserves in gold, platinum and coal, and mining continues to be a core industry, contributing more than 29% of the country’s exports in May 2019. But South Africa’s traditional gold industry has lost some of its shine over the last few decades, with gold production in steady decline. During the past two decades, gold mining companies have experienced only two years of positive annual growth in gold production, with South Africa producing 83% less...

Read More »