WHAT HAPPENED OVERNIGHT IN THE US:
· S&P +1.4%, recouped a week’s losses on Payrolls bad-news=good-news.
· S&P +1.8%, made it nearly a hundred points from Friday’s low, still with Payrolls tailwind.
· Commodities bounce had legs, and resources led again (Alcoa +9%, Freeport +5%, etc).
· But headwinds started to pick up by end of the session. 2yr back above 0.60% (vs Fri low 0.54%) – and 10yr comfortably back above 2%. USD has now recovered four-fifths of Friday’s sell-off.
WHAT’S UP THIS MORNING IN THE EAST:
· Asia ok, but follow-through more muted than yesterday. China still closed (reopens on Thurs).
· Japan +1.5% another 2-week high (ahead of BoJ tomorrow). But Hong Kong +0.1%, off early highs (+1.4%). Tencent -0.6%; Glencore looking 111p (vs London close 115p).
· Australia +0.3% (vs early high +1.3%), kept afloat by miners. BHP +1.6%, Rio +1.4% both indicate London +0.5%. RBA left rates on hold at 2% as expected. AUD 0.7123 a tad firmer on “crazy” Sydney property prices, according to Governor Stevens at Q&A.
SOUTH AFRICAN NEWS:
· Expect AllShare +0.5%. From SA close yesterday, gold unchanged ($1136), plat unchanged ($922), copper -0.7% ($2.34/lb), oil unchanged ($49.40), USDZAR -0.3% (13.57), S&P +0.7%.
· MDC: confirms talks with Al Noor Hospitals over a possible “combination”, which if successful would be implemented through issue of new Al Noor shares to MDC ie a reverse takeover.
TODAYS KEY DATA POINTS:
· 8am: Germany Aug Factory Orders (+0.5% m/m)
· 9.30am: Sept Markit PMI Construction / Retail
· 12pm+: US earnings (Pepsi, Yum!)
· 2.30pm: US Aug Trade Bal