Maseru Securities Market

Market Status: Closed

Global Market Review

 

WEEKLY MARKET COMMENTARY: EQUITIES

25/06/2021


United States

  • Shares on Wall Street were mixed on Wednesday close, with NASDAQ closing at record high while other US indexes ended flat as traders digested statements from Federal Reserve officials. The Market has whipsawed over the last week, feeling the after effects of the Fed’s surprise projection last week for rate increases as soon as 2023, knocking stocks, boosting the dollar and flattening the US bond yield curve. NASDAQ, S&P 500 and Dow Jones Industrial Average ended at 14271.73, 4241.84 and 33874.24 respectively.
  • On the economic front, initial jobless puzzled expectations by staying generally unchanged last week while continuing claims did fall a bit more than expected. On politics, Treasury Secretary highlighted on Wednesday that her department might exhaust emergency measures to avoid breaching the US debt limit as soon as August unless Congress acts sooner to avert a potential default that would be catastrophic.

Europe

  • European stock indexes rallied on Thursday midday trade, led by bank shares on the outlook for economic recovery and possibly higher interest rates. Furthermore, European business surveys captured greater optimism; the German Ifo business climate index rose to 101.8 in June from 99.2 in May and French INSEE business climate index rose to 113 in June from 108 in May, the highest level since 2007. FTSE 100, DAX, CAC 40 and Stoxx 600 were at 7111.58, 15567.38, 6616.55 and 456.2 respectively.
  •  Strong data releases out of the Eurozone and hopes of a further easing of travel restrictions across Europe helped to underpin sentiment during the midday trading.

South Africa

  • South Africa’s major stock indexes halted a five-day slump, joining global peers in rallying after reassuring comments on inflation and monetary policy from Federal Reserve officials bolstered investor sentiment toward riskier assets. Rising base metals prices lifted mining giants, BHP Group Plc and Anglo American Plc, while a recovery in Chinese online titan Tencent Holdings Ltd boosted index heavy weight Naspers Ltd. Meanwhile locally investors were assessing the likely consequences of a surge in COVID-19 and the potential for stricter movement controls. Just before market close, Allshares, Resources and Financial indexes traded at 66178.53, 36550.42 and 33132.96 respectively.
  •  In other news, a composite leading business cycle indicator rose to a record in April as the economy continues to recover from its biggest contraction in a century. However, foreigners remained net sellers of South African stocks for a 13th consecutive day on Wednesday.

 Data source: Bloomberg

 

 

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