Daily Financial Markets Report | Wednesday, 10 December 2014

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

Highlights

 The U.S. stock market staged a rebound on Tuesday but still ended the day lower, even after erasing steep opening losses sparked by China’s tightening of lending rules and Greece’s surprise elections announcement. European stocks were hammered Tuesday after Greece’s government spooked investors by saying it would hold its presidential election earlier than expected. Stocks across Asia were mostly lower Wednesday, weighed down by economic growth concerns throughout the region. In China, stocks flitted between negative and positive territory amid worries that more losses for Shanghai may be in store.

 Spot gold is currently trading at US$ 1 234.20/oz. and platinum at US$ 1 249.80/oz. Brent crude oil is currently trading at US$ 66.30 per barrel.

 The US dollar is currently trading at 1.23 to the euro, 1.56 to the pound and will buy 119.05 Japanese Yen or 11.43 South African Rand.

International markets

The U.S. stock market staged a rebound on Tuesday but still ended the day lower, even after erasing steep opening losses sparked by China’s tightening of lending rules and Greece’s surprise elections announcement. European stocks were hammered Tuesday after Greece’s government spooked investors by saying it would hold its presidential election earlier than expected. Stocks across Asia were mostly lower Wednesday, weighed down by economic growth concerns throughout the region. In China, stocks flitted between negative and positive territory amid worries that more losses for Shanghai may be in store.

The S&P 500 ended the session virtually flat at 2 059.88 after staging an impressive rebound from session lows. The Nasdaq Composite ended the session with a gain of 25.77 points, or 0.5% at 4 766.47. The Dow Jones Industrial Average fell as much as 218 points, but finished 51.28 points, or 0.3%, lower at 17 801.20.

The Stoxx Europe 600 fell 2.3% to 340.48, the worst drop since mid-October, with all of its sectors mired in red, as persistent global growth worries pressured equities. The FTSE 100 Index lost 2.14% to 6 529.47. The DAX fell 2.21% to 9 793.71 and the CAC 40 Index dropped 2.55% to 4 263.94.

The Shanghai Composite Index plunged 5.4% Tuesday following a surprise move by Beijing to rein in lending that fuelled concerns about growth in the world’s No. 2 economy. The Nikkei Stock Average was down 1.5% at 17 540.92, Australia’s S&P 200 was down 1.1% to 5 226.30 and Korea’s Kospi was down 0.6% to 1 958.42.

The US dollar is currently trading at 1.23 to the euro, 1.56 to the pound and will buy 119.05 Japanese Yen or 11.43 South African Rand.

Domestic markets

SA’s blue chip Top-40 index was down 2.4% to 42 911, while the All-share shed 2% to 48 557. These were the biggest daily losses since 12 December 2013.

Commodities

Spot gold is currently trading at US$ 1 234.20/oz. and platinum at US$ 1 249.80/oz. Brent crude oil is currently trading at US$ 66.30 per barrel.

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