WHAT HAPPENED OVERNIGHT IN THE US:
· S&P +0.7%, brushed aside Greece noise to claw back another slither of Monday’s losses.
· USD firmer, but EUR 1.107 fairly blasé - off Tuesday high but still above Mon worst (well above March-April low).
· US data looking ok; June ADP Employment (237k) beat ests, as did ISM Manuf at 53.5 - finally shrugging off soft patch.
· But big bets off ahead of Payrolls later today, Independence Day holiday on Friday – and Greece referendum on Sunday. NYSE’s $27.5bn a 4-day low.
WHAT’S UP THIS MORNING IN THE EAST:
· China -2.5% almost back at Monday’s 3-month low, despite efforts by regulators to entice back investors. CSRC has relaxed margin collateral rules and extended loan terms – after stock exchanges & clearing houses yesterday cut transaction fees, and rumours stamp also to be cut – but herd still heading for exit.
· Rest of region ok. Hong Kong +0.4% reopen after yesterday’s hol; Tencent +1.6% indicates another solid day ahead for NPN.
· Australia +1.4%, on track for 3rd straight gain. BHP +1.4% indicates London +1%.
SOUTH AFRICAN NEWS:
· Expect AllShare +0.25%. From SA close yesterday, gold -$2 ($1168), plat -$7 ($1081), copper +0.2% ($2.63/lb), oil -0.5% ($62.20), USDZAR +0.1% (12.25), S&P +0.1%.
TODAYS KEY DATA POINTS:
· 1.30pm: ECB minutes
· 2.30pm: US June Payrolls (233k), Unemployment (5.4%)
· 4pm: US May Factory Orders