SOUTH AFRICAN MARKET COMMENTARY
Local stocks traded lower on Friday as the JSE All Share index recorded a 0.3% decline to 70,808 index points, while the blue-chip Top 40 index closed 0.39% lower. Resources were the biggest drag, with the local J210 index shedding 1.56%. On the data front, South Africa’s private sector business activity recovered in November after staff in its biggest metal-workers union returned to work after striking in October, a survey showed on Friday. IHS Markit’s Purchasing Manager’s Index (PMI) jumped to a six-month high of 51.7 in November from 48.6 a month before, skipping back into expansionary territory after a month.
EUROPEAN MARKET COMMENTARY
European markets closed lower after another volatile session on Friday, wrapping up a tumultuous week following the discovery of the new omicron Covid-19 variant. The pan-European Stoxx 600 provisionally closed down about 0.8%, having fluctuated either side of the flatline earlier in the day. For the week, the benchmark is down more than 1%. Mining stocks led the losses on Friday, slumping 2.8%, as almost all sectors and major bourses dipped into negative territory.
US MARKET COMMENTARY
US stocks dropped on Friday, after a disappointing November jobs report, as the market wrapped up a roller-coaster week driven by Covid omicron variant concerns. Technology stocks were among the most notable losers on Friday as Tesla fell 6.4% and Zoom Video declined nearly 4.1%. DocuSign cratered 42.2% after the company issued fourth-quarter sales guidance that was lower than what analysts expected. Meanwhile, November’s jobs report showed slower-than-expected job creation last month. Nonfarm payrolls increased by just 210,000 for the month, well below the 573,000 jobs predicted by economists polled by Dow Jones.
ASIAN MARKET COMMENTARY
Stocks in Asia-Pacific dropped earlier today, while investors monitored bitcoin prices after they fell sharply over the weekend. Alibaba shares in Hong Kong fell nearly 8% in early trade. Four new stocks – including Chinese technology giants JD and Netease – were added to the benchmark Hang Seng index. The latest update increases the number of stocks in the main index to 64, from the current 60 stocks. Troubled Chinese property developer Evergrande will be removed from the China Enterprises index.
CURRENCY MARKET COMMENTARY
The rand steadied in early trade on Friday, struggling for momentum as some uncertainty over the Omicron coronavirus variant lingered. However, the rand was 0.93% softer against the dollar at the close of the […]
