By Andre Botha, Senior Dealer, TreasuryONE
Yesterday was a day of relative calm in most markets with cautious trade in European and Asian time and then some positivity returning to markets in New York.
US stocks closed higher last night with the S&P and Dow both up around 3.4% and the Nasdaq up 2.58%. This was after the Fed’s FOMC minutes confirmed that interest rates would be kept near zero until the COVID-19 pandemic was under control. Asian markets are positive this morning as optimism that the spread of the Coronavirus is peaking grows.
The JSE All-share was 1.92% lower yesterday, having closed before the US markets bounced. US futures are flat this morning as markets now focus on this afternoon’s initial jobless claims number. Analysts are expecting an increase of 5.25 million new claims this week. A surprise on the topside would probably see as big a market reaction as if the number comes out better than expected as markets are geared for the worst.
The failure of European finance ministers to agree further economic stimulus sees the Euro remain on the backfoot while the Pound is a touch firmer. The Rand is holding on to its firmer close and is trading at 18.1850 in line with other EM and risk-sensitive currencies.
The Oil price is steady at $33.15 ahead of today’s OPEC meeting while precious metal prices are relatively unchanged.
