Daily Financial Markets Report: Monday, 4 August 2014

sacciDaily Financial Markets Report sources information from Business Day, Reuters, JSE Ltd and others.

Highlights

 U.S. stocks on Friday built on the week’s losses, leaving the S&P 500 with its biggest weekly drop in two years. Friday’s flurry of economic data only briefly lifted the stock market. Instead, Thursday’s selloff, sparked in part by signs of rising wages, continued as investors remained fearful that the Federal Reserve might raise interest rates sooner than expected. Germany‘s benchmark stock index tumbled on Friday, marking a third straight day of losses, as investors continued to worry about the fallout from the tougher sanctions on Russia. Hong Kong stocks rose early Monday after a mild retreat in the previous session, bucking a downward regional trend.

 Spot gold is currently trading at US$ 1 292.00/oz. and platinum at US$ 1 467.20/oz. Brent crude oil is currently trading at US$ 105.04 per barrel.

 The US dollar is currently trading at 1.34 to the euro, 1.68 to the pound and will buy 102.66 Japanese Yen or 10.67 South African Rand.

International markets

U.S. stocks on Friday built on the week’s losses, leaving the S&P 500 with its biggest weekly drop in two years. Friday’s flurry of economic data only briefly lifted the stock market. Instead, Thursday’s selloff, sparked in part by signs of rising wages, continued as investors remained fearful that the Federal Reserve might raise interest rates sooner than expected. Germany‘s benchmark stock index tumbled on Friday, marking a third straight day of losses, as investors continued to worry about the fallout from the tougher sanctions on Russia. Hong Kong stocks rose early Monday after a mild retreat in the previous session, bucking a downward regional trend.

The S&P 500 fell 5.52 points, or 0.3% to end at 1 925.15, though it finished off its session low. The benchmark endured a weekly loss of 2.7%, its largest percentage drop since the week ended 1 June 2012. The Dow dropped 69.93 points, or 0.4%, to finish at 16 493.37 on Friday. The tech-heavy Nasdaq Composite was down 17.13 points, or 0.4%, to close at 4 352.64, leaving it down 2.2% for the week.

Germany’s DAX 30 index dropped 2.1% to close at 9 210.08. For the week, the benchmark slid 4.5%, the biggest weekly loss in two years. The pan-European Stoxx Europe 600 index slid 1.2% to 331.91, closing at the lowest level since April and losing 2.9% on the week. France’s CAC 40 index dropped 1% to 4 202.78. The benchmark closed 3% lower for the week. The U.K.’s FTSE 100 index gave up 0.8% to 6 679.18, for a 1.7% weekly drop.

The Hang Seng Index edged up 0.2%, with mainland Chinese banks stronger. Over on the Chinese mainland, the Shanghai Composite Index ticked up 0.2%.

The US dollar is currently trading at 1.34 to the euro, 1.68 to the pound and will buy 102.66 Japanese Yen or 10.67 South African Rand.

Domestic markets

The Top-40 benchmark index shed 1.06% to 45 733 while the broader All-share index stumbled 0.93% to 50 917.78. This was the third straight day of losses for the market.

Commodities

Spot gold is currently trading at US$ 1 292.00/oz. and platinum at US$ 1 467.20/oz. Brent crude oil is currently trading at US$ 105.04 per barrel.

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