MONEY LIVE | EasyEquities grows to almost 1m accounts, revenue reaches R109m.
Stocks fell Thursday after the Federal Reserve outlined plans to pare its balance sheet by more than $1 trillion a year while hiking interest rates, a campaign to curb inflation that could hit economic growth.
The Fed’s plan to prune its near $9 trillion balance sheet, which was swollen by pandemic-era bond purchases, points to more volatility in global markets. Investors are doubtful the Fed can avoid tipping the world’s biggest economy into a recession as it focuses on slowing activity to bring down price pressures.
Meanwhile, Russia slipped closer to a technical default after foreign banks declined to process about $650 million of dollar payments on its bonds, forcing it to offer rubles instead. The euro hit a one-month dollar low ahead of the release due Wednesday of the minutes from the Fed's latest policy meeting.
"Investor confidence might have improved from the low point in early March when the Ukraine war was unfolding," said AJ Bell investment director Russ Mould. Fed governor Lael Brainard, who is considered a dove, on Tuesday spooked traders by saying bringing US inflation down from 40-year highs was of"paramount importance" and that the bank was"prepared to take stronger action" if warranted.
Crude futures had slid the previous day on the European Union's decision not to include Russian oil in a fresh round of sanctions. In a trading update for the year ended 27 February 2022, the retailer said its group sales grew by 5.2% to R97.9 billion.This is despite the impact of the civil unrest in July 2021, which cost the retailer around R1.8 billion.Sovereign credit ratings agency Moody's kept its rating of Eskom at Caa1 with a negative outlook.Moody's upgraded South Africa's outlook last week, and on Wednesday upgraded the outlooks of major banks and insurers.
"These strengths are balanced against sales revenue constraints as a result of subdued forecast GDP growth of only about 1.5% in 2022 and in 2023 for South Africa where high unemployment and inflation are hurting household finances. There is still some remaining uncertainty around future level of COVID-19 related mortality claims given the relatively low vaccination rate in the country."
A gauge of the dollar’s strength was near a three-week peak. Fed Governor Lael Brainard said Tuesday curbing inflation is “paramount,” adding the central bank may start trimming its balance sheet rapidly as soon as May. “The key risk for Wall Street-correlated world stock markets remains the Federal Reserve tightening cycle,” Christopher Wood, global head of equity strategy at Jefferies LLC, wrote in a note.
“And then we’re heading into earnings season. Volatility levels are probably too low and will start to pick up.” Caxton is also buying the Amcor Port Elizabeth operations, which produces products for the automotive tyre industry.Royal Bafokeng Platinum’s independent board has resolved not to apply to the Takeover Special Committee concerning Northam Platinum’s acquisition of a large portion of the company share.
The only offer on the table now is the mandatory offer from Impala Platinum which has acquired over 37% of RBPlat shares to date. Stocks in Asia wavered Tuesday and crude oil climbed as investors evaluated the prospect of tougher sanctions against Russia for alleged atrocities during the war in Ukraine.
Market moves are continuing to be shaped by the ramifications of the conflict and tightening monetary settings as raw-material costs stoke inflation. The Fed minutes later this week will guide expectations for how rapidly the U.S. central bank will increase rates and reduce its bond holdings. Markets are closed for holidays in Hong Kong and China. Shanghai reported over 13,000 daily Covid cases for the first time amid a sweeping lockdown.Gemfields, a supplier of coloured gemstones, has announced record emerald auction results which realised $42.3 million in sales.
The result comes as the price of diamonds and other precious stones are high amid supply shortages and supply chain disruptions. Phoevos Pouroulis, CEO of Tharisa, said he was pleased Pryor had joined the team as the company embarks on a"transformative journey" to develop the Karo platinum project and ensures leadership is in place so that Tharisa delivers on its state objectives. Stocks rose Monday amid a rally in Hong Kong spurred by China’s move to ease a dispute with the U.S. over audits. Treasuries fell on the prospect of sharp Federal Reserve interest-rate hikes to fight inflation.
The Treasury yield curve is flashing more warnings that economic growth will slow as the Fed raises rates to tame inflation stoked in part by commodities. The two-year U.S. yield has exceeded the 30-year for the first time since 2007, joining inversions on other parts of the curve. In China, where markets are closed for a holiday, most of Shanghai’s 25 million residents are under some form of Covid lockdown. State media also reported a new subtype of the omicron variant.US equities closed the first session of the second quarter higher on Friday after data showed American businesses adding workers in March, though the manufacturing sector is struggling amid high inflation.Amazon closed 0.
The Fed's approach to combatting the record wave of price increases hitting the US economy could be fleshed out next week when the central bank releases the minutes of its March policy meeting.An index measuring South African manufacturing sentiment rose to the highest level in almost 23 years in March though its advance may soon be halted, with survey respondents less optimistic about business conditions toward the end of the year.
The gauge tracking expected business conditions in six months’ time fell to 55.1, from 69.5, the biggest single-month decline since November 2008 when the global financial crisis started. “The level of the expectations index remains well above recent lows seen during the height of the pandemic,” Absa said.
The move on gas by Russian President Vladimir Putin in response to Western sanctions prompted Germany, the most reliant on Russian gas, to accuse him of"blackmail" as it activated an emergency plan that could lead to rationing. MSCI's global share index fell 0.17% to 710.22, against a high of 724.49 hit on Wednesday, heading for little change on the week.BoFA strategists said recession risks will"jump" in the coming months as a"bull era of central bank excess, Wall Street inflation globalization ending".
Supply disruption and surging raw material costs drove Japanese business confidence to a nine-month low last quarter, data on Friday showed.Oil prices continued to slide following an announcement on Thursday of huge releases from U.S. strategic reserves and ahead of a Friday meeting of oil-consuming nations to discuss their own reserve releases.
U.S. March jobs data at 1230 GMT will be watched for indications of wage inflation, in addition to the headline jobs figure.The closely-watched spread between U.S. two-year and 10-year notes is nearly zero. Safe-haven gold dipped 0.25% after its biggest quarterly gain in two years. Spot gold was last quoted at $1,932.34 per ounce.U.S. equity futures pushed higher Friday and Asian stocks were mixed as investors evaluated the economic outlook amid moderating oil prices, tightening Federal Reserve policy and Russia’s war in Ukraine.
Investors begin a new quarter wondering if the fighting in Ukraine, the isolation of Russia and the Fed’s increasingly hawkish turn will engender still more volatility and further losses for stocks and bonds. Raw materials are the only key asset class to deliver major gains so far in 2022. Cease-fire talks between Ukraine and Russia are set to resume Friday. President Vladimir Putin said Russia aims to keep supplying gas to European customers even as it demands they shift to payment in rubles.
Defensive sectors such as real estate, healthcare and utilities were the only gainers among the major S&P sectors. Utilities hit a fresh record high, set to post their best monthly performance since 2002. "It's the end of the month, end of the quarter, so you might have some last-minute portfolio switching. And, of course, the market will set itself up for tomorrow's employment data."
US President Joe Biden will announce Thursday the release of a record million barrels of oil a day for about 180 days from US strategic stockpiles in an attempt to dampen soaring prices, the White House said.
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