WHAT HAPPENED OVERNIGHT IN THE US:
· S&P unchanged, treaded water ahead of today‘s holiday (& Sunday Greece referendum).
· June Payrolls +223k came in shy of ests & ADP – and May revised lower.
· Pay also stalled, and unemployment at 5.3% flattered by participation a 3-decade low.
· 2yr -7bps at 0.627% and USD dipped. But session was more notable for what didn’t happen.
· Equities sideways in quiet trade (NYSE’s $24bn lightest in a week).
WHAT’S UP THIS MORNING IN THE EAST:
· China swinging wildly again – off intraday low -7% on regulator “investigation” into short-selling. 457 companies have also suspended shares ostensibly for “pending announcements”. And futures traders have reportedly received phone calls from China Financial Exchange instructing them not to sell. But real driver of recent weakness is margin call – with outstanding margin loans down Rmb51bn yesterday, second-biggest daily drop on record (after last Friday’s Rmb56bn).
· Hong Kong -0.3%, middle of day’s range. Tencent -1% will be big test for Naspers again today, where rump has recovered this week to 3-month high.
· Australia -1.2% dragged again by miners. BHP -1.7% (indicates London -2%) after iron ore dropped sharply yesterday (-6% at $55.63/t) on record shipments from Port Hedland in Aus - world’s largest bulk export terminal – to China (where steel purchasing managers’ index hit a 6yr low in June).
SOUTH AFRICAN NEWS:
· Expect AllShare -0.25%. From SA close yesterday, gold +$3 ($1166), plat +$4 ($1082), copper -0.1% ($2.63/lb), oil -1.9% ($61.90), USDZAR +0.3% (12.28), S&P -0.1%.
TODAYS KEY DATA POINTS:
· 9.55am: Germany June Markit PMI Services final read (54.2)
· 10.30am: UK June Markit PMI Services (57.5)