WHAT HAPPENED OVERNIGHT IN THE US:
· S&P +0.8%, opened higher and held for only its 2nd positive session in 7 and the S&Ps biggest one day gain since July.
· All sectors green as risk-off took a breather ahead of US-China trade talks with over 85% of stocks advancing.
· Although telcos and retailers leading still gives an indication of the defensive and cautious mood in the market.
· Bonds were softer with 10 yr yields +2bps, while the dollar recovered after softening slightly in early trade.
WHAT’S UP THIS MORNING IN THE EAST:
· Asia mostly green with China (-0.8%) the clear laggard, falling for its 5th straight day, with investors largely staying out until a clearer picture emerges of US-China trade tensions.
· HK +0.5% as Tencent gains +3.3% to HKD337 (indicating NPN up around +2%), now higher than before the disappointing results. Japan +0.6% with JPY basically unch.
· Australia 0.2%, lead by tech with miners basically flat, Rio +0.2% and BHP -0.3%, indicating London up 40bps.
SOUTH AFRICAN NEWS:
· Expect AllShare +0.25%. From SA close yday, gold -$6 ($1174), plat -$14 ($779), copper -0.5% ($2.62/lb), oil +0.9% ($71.40), USDZAR +0.9% (14.70), S&P +0.1%.
· FBR: Update after close last night; trading conditions ‘difficult’ but 1H stronger YoY, LfL sales +2.8%.
· MTN: Uganda MTN to list on its exchange before the country will agree to extend the mobile operator’s license.
· Due today: RES FY18
· AGMs: LEW
TODAYS KEY DATA POINTS:
· 11am: Eurozone CPI
· 4pm: US U. of Mich. Sentiment