Markets Overnight:
Most markets (including ours) were up on Friday, mostly on optimism of Greece clinching the long-awaited rescue package that will avoid a disorderly debt default.
The optimism might well be carried into this week with Greece’s cabinet approving a final set of austerity measures on Saturday despite violent protests. These measures, required by the EU and IMF to approve the rescue package, now raise the probability that Greece will be able to avoid a disorderly default.
In more positive news China’s central bank also cut reserve requirements for the first time this year on Saturday in an attempt to boost economic growth.
In the Middle East, however, the drama continues with Iran halting crude oil sales to France and Britain to pre-empt an EU ban on oil imports while at the same time negotiating supply contracts with China.
Company News:
Anglo American (AGL) CEO said on Friday that the company would conduct a review of its subsidiary Amplats (AMS) as the market speculated that Anglo could spin off the business that has been hit hard by safety stoppages and lost output. They also reported a 14% rise in full-year profit. Gold Fields (GFI) also reported a 26% rise in quarterly earnings on Friday, in line with expectations as its results were boosted by a favourable exchange rate.
Today:
The US markets are closed today and there will also not be a lot of significant data released. Locally, WBO will report interim results later this morning. The most important news to look out for today, however, will come from the Eurozone as finance ministers meet to decide on the Greece rescue package.
Taking into account the positive news from Greece and China the past weekend as well as Asian markets and US futures rallying this morning, we expect markets to be strong today.
