Markets Overnight:
Global markets were mixed with equities up in Europe yesterday but down in the US and also in Asia this morning. Gains were trimmed in markets across the globe after reports suggested that EU support to Greece might be postponed until April after the country holds its elections. Should this be the case, Greece, who needs to make a €14.5bn bond payment on March 20, might very well become the first Eurozone country to default.
Some of the data that was released yesterday include Italy’s GDP which confirmed that the Eurozone’s third biggest economy has officially entered into a recession (the 4th one in the last decade!). Also, data this morning showed that foreign investment in China declined for a third straight month in January, with the outlook being “grim”, according to the Chinese spokesman for the commerce ministry. Positive employment data out of Australia this morning had little impact on their market which slumped nearly 1.7%.
South Africa:
Our markets also closed slightly in the red with the Top 40 index declining 0.15%. On the positive side, retail sales for December came in at a much better than expected 8.7%.
Company News:
The Competition Commission had little sympathy for Telkom (TKG) yesterday, suggesting it should raise the R4.5bn fine in the open market or sell some of its assets. Telkom hit back saying the fine was inappropriate and should rather be R26.8m should they be found guilty.
Anglogold Ashanti’s (ANG) earnings for the year came in at a record $1.3bn, a 65% improvement on the previous year, but reported a worse than expected drop in fourth quarter earnings. Assore (ASR) also posted a 65% increase in earnings for the 6 months to December 2011 while Italitile (ITE) reported a 22% rise in profits for the same period.
Today:
There is a lot of important data out of the US to look out for today, including building permits, housing starts, PPI and unemployment claims. Important local companies reporting today include Impala Platinum (IMP), Woolworths (WHL) and JDGroup (JDG).
Considering Asian markets and US futures, we should be in for a slippery slide this morning. To make a long story short, if you are long... so long!
