WHAT HAPPENED OVERNIGHT IN THE US:
· S&P -0.4%, oil rally not enough to sustain early rally with fears of a good jobs number today potentially leading to a hawkish fed.
· Banks and industrials were the big gainers and energy stocks held their rally, while tech shares came off.
· AAPL -1% after report that the co. has started reducing orders from iPhone 7 suppliers.
· US 10-yr yields pulled back slightly after hitting an 18-month high Thursday.
· USD looking at its biggest weekly fall since the Trump election, but holding around its strongest level YTD.
WHAT’S UP THIS MORNING IN THE EAST:
· Asia all red- hit hard by tech sell-off.
· China down -1% and Hong Kong -1.2% (Tencent -2%) while Japan -0.7% as Yen extends gains.
· Australia -1%, with resources coming off, BHP -2.3%, losing some of its previous day’s oil boost (indicates London -2%) while Rio -1.1%.
SOUTH AFRICAN NEWS:
· Expect AllShare -0.50%. From SA close yday, gold +$10 ($1173), plat +$16 ($916), copper -0.8% ($2.61/lb), oil -0.1% ($53.25), USDZAR +0.4% (14.07), S&P -0.5%.
· MMI: 1Q16 update: tough economic conditions and weak returns from equity markets “a headwind”. Recurring new business +18%, single new business -23%. New business volumes -7%, new business value +24%.
· Also due today: HAR 1Q17
· AGMs: ARI.
TODAYS KEY DATA POINTS:
· 10am: Spain Unemployment MoM Net
· 3.30pm: US Change in Nonfarm Payrolls
· 3.30pm: US Unemployment Rate