Daily Market Review

*Tuesday, 26 October 2021*

US markets continued higher with both the S&P500 and the Dow Jones Industrial Average closing at record levels. Strong earnings from consumer companies, banks and manufacturers have soothed investors’ concerns about labour shortages and higher inflation. Tesla’s shares jumped 13%, hitting the $1 trillion market cap valuation after Hertz announced it ordered 100’000 vehicles from the carmaker. Facebook jumped in after-hours trading after it reported earnings and announced share buybacks. PayPal rallied 2.7% after it said it wasn’t pursuing a takeover of Pinterest. Pinterest shares dropped 13% on this news. Microsoft, Twitter and Alphabet are to report earnings today. The yield on the 10-year Treasury note closed at 1.634%.

European equity markets finished mostly higher, with auto & parts, miners and energy leading the markets higher. Media and telecom stocks underperformed. Stocks continued to benefit from the buy-the-dip mantra, underpinned by underlying central bank liquidity tailwind, strong corporate and consumer balance sheets, and pent-up demand. German business confidence came in weaker than expected. Leaked UK budget information highlighted more money for health, infrastructure, social housing and a pay increase for the public sector

*S&P500 +0.47%* *Dow +0.18%* *Nasdaq +0.90%* *FTSE100 +0.25%* *DAX +0.36%* *CAC -0.31%*

Asian markets are mostly higher. The Nikkei is outperforming, gaining just shy of 2%. Chinese coal prices remain under pressure, now down by a third from last week’s highs. South Korean GDP growth came in lower than expected as domestic demand and investment remained weak, however, exports remain strong. China’s Modern Land became the latest property developer to miss a repayment on a dollar bond.

*Nikkei +1.75%* *Hang-Seng -0.45%* *Shanghai +0.02%* *ASX +0.17%*

The JSE closed mostly lower with industrials and financials in the red, resources however bucked the trend closing in the green. Industrial metals were the standout performer adding 1.66%. Altron closed lower despite posting a 2% growth in revenue and a 71% growth in operating profit. Dividend per share fell by 79%. Altron unbundled money-spinner Bytes technologies earlier in their financial year. The 10-year Government bond closed firmer at 9.555%.

*Notable Gainers/Losers*

Sappi +3.31% Amplats +2.81% Equites +2.71% Netcare +2.24% Anglo +2.04% RBPlat +1.84% Clicks +1.69% Discovery +1.53% BHP +1.52%

Sibanye -5.08% Bytes -4.00% PSG Konsult -2.94% Prosus -2.87% Naspers -2.67% Goldfields -2.57% Harmony -2.01% Bats -1.19%

*JSE All-Share -0.10%* *JSE Top 40 -0.13%* *Industrials -0.88%* *Resources +0.77%* *Financials -0.37%*

JSE All-Share 66’980

S&P500 4’566

USDZAR 14.70

EURZAR 17.05

GBPZAR 20.23

EURUSD 1.16

GBPUSD 1.38

GBPEUR 1.19

AUDZAR 11.02

NZDZAR 10.53

Brent Crude $85.55

Gold $1’805

Platinum $1’056

Palladium $2’041

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