Markets Overnight:
Our market as well as US markets ended square and European markets ended in the red with the IMF coming out saying that austerity measures could temper Greek growth to the extent that no reduction in the debt/GDP is made. A confidential report by Greece’s international lenders also highlighted risks and questioned Greece’s ability to return to capital markets in the coming years. To make matters worse the EU plans to deploy a permanent team of inspectors to monitor Greece’s finances, which of course did not go off well with the already humiliated Greeks.
This morning China’s manufacturing PMI for February indicated a contraction for the fourth straight month even though it is an improvement on January.
Company News:
Shoprite (SHP) reported an 18.6% rise in first-half profit yesterday and indicated that they might be interested to expand more into Africa and especially Nigeria. Implats (IMP) also said yesterday that they were hopeful that unions will persuade striking workers to return to work at its Rustenburg mine, which has now already cost them 1866kg of lost production.
Today:
Data to look out for today include US existing home sales, PMI data from Europe, Germany and France as well as Europe’s industrial new orders. Local companies reporting include Massmart (MSM), Imperial (IPL) and Rainbow Chicken (RBW). Also, look out for the budget speech and January’s CPI later today.
Considering stronger Asian markets and US futures, we expect markets to be positive today.
To egest matters worsened the CISAEU plans to deploy a eternal squad of inspectors to reminder Greece's finances, which of class did not go off fountainhead with the already mortified Greeks.