WHAT HAPPENED OVERNIGHT IN THE US:
· S&P -0.3%, spent session under water, weighed again by resources.
· Macro data indicated tepid economy in June (Personal Income +0.4%, Spend +0.2%), steady July (Markit PMI Manuf 53.8 vs June 53.6).
· USD nudged higher again to turn the screws on commodities (following weak China PMI earlier in the day).
· Oil below $50; gold another 5-year low; copper flirting with another 6-year low - platinum there already.
· Losers extended 2015 losses; Transocean -6% (-32%), Freeport -5% (-52%), Newmont -4% (-13%), etc.
WHAT’S UP THIS MORNING IN THE EAST:
· China +1.9%, finally pricing some positives from low commodities prices, and speculation of imminent stimulus to prop up growth.
· But Hong Kong -0.1%, weighed by Tencent -1.8% at a one-month low.
· Australia +0.5%, buoyed by everything except resources. BHP -0.9% & Rio -0.3% indicate flat London open.
· AUD 0.7370 off a 6-year low, thanks to RBA on hold (at 2%) but omission of usual statement about currency being too strong.
SOUTH AFRICAN NEWS:
· Expect AllShare -0.25%. From SA close yesterday, gold -$8 ($1084), plat -$28 ($946), copper -0.6% ($2.34/lb), oil -2.2% ($49.70), USDZAR -0.1% (12.68), S&P -0.1%.
TODAYS KEY DATA POINTS:
· 7am+: SA earnings (NED, TRE), Europe earnings (Axa, BMW, Hugo Boss, etc)
· 4pm: US June Factory Orders