SOUTH AFRICA
- The Competition Commission raided the offices of some of the big corporates on Thursday, including Sanlam, Discovery and Momentum.
- Eight of the country’s major life insurers could face a hefty fine following allegations of price fixing and collusion.
- The insurers are also suspected of colluding to fix trading conditions linked to fees for investment products.
- If found guilty of fixing prices or trading conditions for their investment products, the insurers could be fined up to 10% of their profits. EWN
- The SARB’s proactive efforts to contain inflation means the country has a good chance of getting through the worst global inflation shock in a generation “.
- This according to Deputy SARB governor Fundi Tshazibana.
- She added, the central bank’s proactive efforts have cushioned the country from bigger hikes during the worst global inflation shock in a generation.
- She also added that this would be without particularly high inflation or high interest rates” Moneyweb
- Fixed income traders are decreasing their expectations for further SA interest rate hikes after the latest reading on inflation matched economist expectations.
- July’s CPI figure was the first in three months not to surprise the market to the upside.
- Traders using this as a reason to unwind bets on the back of easing concerns that the central bank will have to continue with aggressive policy moves.
- Forward-rate agreements for the year 2023 and 2024 fell on Wednesday after data showed the headline consumer-price index rose 7.8% from a year earlier, compared with 7.4% in June. Fin24
GLOBAL MARKETS
Stocks:
- US stock futures lower in Asian markets ahead of Jackson hole this evening.
- On Thursday markets rallied strongly with the SP500 nearly closing above the 4200 level.
- In regular trading on Thursday, the Dow rose 0.98%, the S&P 500 gained 1.41% and the tech-heavy Nasdaq Composite jumped 1.67%.
- Futures contracts tied to the three major indexes were all trading near breakeven.
- In extended trading, Dell tumbled more than 5% on disappointing earnings, while Affirm plunged 14% on weaker-than-expected revenue guidance for next year.
Bonds:
- The US 10-year yield declined to 3.05%, retreating from the near two-month high of 3.1% hit on August 24.
- Fed policymakers noted the need to move borrowing costs to a restrictive territory, highlighting the necessity to bring inflation substantially down.
- This view all but erasing previous bets of a dovish pivot following slower inflation in July.
- Still, more recent data provided a little more room for the central bank to maintain its hawkish stance.
YESTERDAY
- The Dow added 322 to 33,291
- The SP500 58 to 4,199
- The Nasdaq gained 207 to 12,639
Futures Trading:
 image : Trading economics
OVERNIGHT HEADLINES
- Asian markets followed New York higher with positive returns across the region. Traders remain nervous ahead of this afternoon’s, much anticipated Jackson Hole conference.
- In Japan, the Nikkei 225 rose 0.57% to 28,64, rising from two-week lows after tracking overnight gains on Wall Street.
- Investors waiting for Jerome Powell’s speech at the Jackson Hole symposium later today.
- Investors also assessed rising inflation in the Japanese capital city of Tokyo, signalling further acceleration in nationwide consumer prices in the coming months.
- Still, the Bank of Japan is expected to keep monetary settings ultra-loose to support a fragile economic recovery.
- In Australia, the ASX 200 climbed 0.79% to close at 7,104. The ASX rising for the 3rd straight session in a broad-based rally, supported by strong corporate earnings and firmer commodity prices.
- Meanwhile, gold stocks declined on weaker bullion prices, with the benchmark index finished the week 0.15% lower, snapping a five-week advance. Reuters
- Brent crude futures rose above $100/bl. Prices were set to finish the week higher.
- Traders citing a tightening supply outlook as potential output cuts by OPEC+ countered expectations of a surge in Iranian oil exports and fears of a global economic slowdown.
- Earlier this week, Saudi Arabia warned that OPEC+ could cut production to stabilize volatile markets.
- Investors also digested hawkish remarks from Federal Reserve officials ahead of Fed Chair Jerome Powell’s speech at the Jackson Hole symposium later today.
- In the US, the benchmark WTI contract also rose above $93.95/bl and were also set to finish the week higher. Gulf Energy news
- Gold prices declined to $1754/oz as caution dominated sentiment ahead of US Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium.
- Traders however remain divided on whether the Fed will deliver another supersized 75 basis point or a more modest half-percentage point rate hike in September.
- Fed president Bostic also commenting that he is 50-50 on deciding between a 75 or 50 bps hike.
- Gold is set to end the week little changed, though analysts expect further volatility should Powell’s remarks surprise markets. Kitco metals
- The US dollar steadied around 108.5, as traders braced for Federal Reserve Chair Jerome Powell’s highly-anticipated speech at the Jackson Hole symposium later today.
- Investors all looking for guidance on the central bank’s tightening plans.
- Powell is expected to reiterate the central bank’s aggressive stance against surging inflation following a raft of hawkish remarks from Fed officials.
- This likely supporting the case for further monetary tightening. FX news
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