Global markets ended mostly higher on Tuesday, driven by a bounce-back in technology shares.European markets ended higher as Wall Street staged a recovery amid trade tensions that are still prevalent. Asian markets are trading lower following news that China is requesting a meeting with the World Trade Organisation to impose sanctions on the US. Locally,the JSE extended its losing streak to a third consecutive session on Tuesday, with miners and retailers coming under pressure.
The JSE extended its losing streak to a third consecutive session on Tuesday, with miners and retailers coming under pressure. Banks found support from a firmer rand and received good news from ratings agency Moody’s, which adjusted its outlook for the sector from negative to stable. In economic news, manufacturing production increased 2.9% year-on-year in July, following a 0.6% rise in June. The All Share lost 0.95% and the Top 40 surrendered 0.99%. Gold miners gave up 3.05% and platinum miners retreated 2.61%. Property lost 0.14%, while banks added 0.16% and general retailers closed 0.74% higher. Advtech gained 3.79% after announcing that it had secured control of Monash SA and Rand Merchant Investments added 2.19% after reporting a 14% increase in its normalised earnings in the year to end-June. Trellidor rose 5.56% and Afrocentric Health advanced 6.09%, while Group Five gave up 8.57%.
56 174.01 (-0.95%)
Stocks ended higher on Tuesday as tech shares bounced back. The Dow Jones rose 114 points, or 0.44% to finish near 25,971 as shares of Apple (+2.5%) and Microsoft (+1.7%) advanced, while Intel (-3%) and Walt Disney (-1%) detracted. The S&P 500 added 11 points, or 0.37%, to end near 2,888 with a rally in shares of Activision Blizzard (+7.1%) and United Rentals (+5.2%) against downturns from AmerisourceBergen (-4.8%) and Western Digital (-3.6%). The tech-heavy Nasdaq climbed 48 points, or 0.61%, to close at 7,972, driven by gains from Activision Blizzard (+7.1%) and Take-Two Interactive Software (+3.7%), while Western Digital (-3.6%) and Intel (-3%) led the losses.
US 10 – Year
2.966% (-1.3 bps)
The European markets ended Tuesday’s session with modest losses. Markets dropped during the first few hours of trade, but recovered some ground in the afternoon after markets on Wall Street staged a recovery. Traders continue to keep a close eye on trade issues. Reuters reported today that China will ask the WTO for permission to impose sanctions on the United States. Mark Carney is set to continue as the governor of the Bank of England until the end of January 2020 to support a smooth Brexit and transition, UK Chancellor Philip Hammond confirmed Tuesday. Hammond made the announcement while speaking at Parliament. The seven-month extension was agreed in an exchange of letters between the Governor and the Chancellor, the Treasury said in a statement. On the FTSE 100, Cairn Energy sank 2.67%. In Germany, Aareal Bank Group raised 1.53%. On the CAC 40, Ubisoft increased 4.25%.
FTSE 100 (UK)
Euro Stoxx 50 (Eurozone)
CAC 40 (France)
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Asian markets fell following news that China is requesting a meeting with the World Trade Organisation to impose sanctions on the US. The financials sector in Australia reversed the previous day’s gains to trade lower by 0.45%, dragging the overall index lower. Myer Holdings lost more than 6% after posting lower net profits. Indian markets gave up their early trade gains with state run oil companies BPCL, IOC and HPCL all down in the range of 1-2%. The Nikkei lost 0.18% with exporters Mitsubishi Electric, Canon and Panasonic lower by more than 1% each, despite a flat yen. The South Korean Kospi closed just below the flat line with shares of Samsung Electronics and competitor SK Hynix dropping 1.1% and 2% respectively. Greater China markets remain in the red, with the Hang Seng leading the bear market territory.