Daily Market Review

*Wednesday, 28 July 2021*

US and European equities closed lower across the board. Tech stocks were the biggest losers as China’s crackdown weighed on sentiment. Microsoft, Alphabet and Apple posted a surge in revenue and record earnings beating analyst expectations. Boston Scientific rose 3.5% after the medical-devices company raised earnings guidance while UPS fell 7% after average daily shipping volume fell compared to the same period a year ago. Facebook, Pfizer, Boeing, Shopify, Macdonalds and Spotify are some of the companies reporting results today. The focus will be on the Fed’s FOMC meeting today with its interest rate announcement expect at 8 pm SA time.

*S&P500 -0.47%* *Dow -0.24%* *Nasdaq -1.21%* *FTSE100 -0.42%* *DAX -0.64%* *CAC -0.71%*

Asian markets are weaker today. Mainland China’s sell-off continues but Hang Seng is steadier as beaten down education and property sectors rebound. Semiconductors are driving steep losses on Taiwan’s benchmark after *Apple* warned supply issues may hamper iPhone production. The Nikkei and Aussie ASX are also weaker amid the latest virus developments in Australia and Japan. Sydney confirmed a 4-week extension of lockdown after the 31st of July. A surge in Tokyo’s daily cases prompted Japan’s PM Suga to urge against non-essential outings, however, he also insisted there is no need to suspend the Olympics.

*Nikkei -1.77%* *Hang-Seng -0.84%* *Shanghai -0.76%* *ASX -0.71%*

SA markets closed weaker after Naspers/Prosus closed lower following a drop in Tencent after Chinese competition authorities ordered it to stop exclusive music licensing deals and imposed a small fine on Tencent Music, the world’s fifth-largest music streaming service according to Statista. Industrials and industrial metals were the biggest losers while financials managed to gain 0.59%. The 10-year government bond closed weaker at 8.87%. British American Tobacco and AECI to report results today.

*Notable Gainers/Losers*

Resilient +3.08% Spar +2.32% Santam +2.31% Bidvest +2.22% Mr Price +2.18% Remgro +1.88% Vukile +1.84% Nedbank +1.64% Aspen +1.59% Clicks +1.51%

Naspers -7.33% Prosus -7.30% Sasol -2.96% Capco -2.65% Sappi -2.26% Richemont -1.89% Northam -1.65% Sirius -1.57%

*JSE All-Share -1.04%* *JSE Top 40 -1.19%* *Industrials -2.45%* *Resources -0.01%* *Financials +0.59%*

JSE All-Share 67’341

S&P500 4’401

USDZAR 14.78

EURZAR 17.47

GBPZAR 20.41

EURUSD 1.18

GBPUSD 1.39

GBPEUR 1.17

AUDZAR 10.88

NZDZAR 10.29

Brent Crude $73.85

Gold $1’806

Platinum $1’048

Palladium $2’605¬

Alan Heyman

Sources: Factset, Yahoo Finance, Trading Economics, BusinessDay Live, WSJ