Today

The SA market should open slightly easier (-0.2%) following weaker US markets and easing Gold and Platinum prices. An unchanged rand will do little to influence market movements and we may see local markets marking time for the first couple of hours waiting for guidance from European markets.

Negotiations between Greece and its private creditors will continue today after progress had been made on the Greek debt swap talks. US Q4 GDP is expected to have risen to 3.0% y/y from 1.80% y/y in Q3. China’s stock market remains closed.

Yesterday  

The DJIA and S&P 500 eased -0.18% and -0.58% following weaker than expected home sales figures and mixed  earnings reports. The DAX, CAC 40 and FTSE 100 gained 1.84%, 1.53% and 1.26% buoyed by the US Fed’s pledge to keep interest rates low. The HangSeng lifted 1.63%, while the Nikkei225 slipped -0.39%. The JSE All-Share and the Top-40 gained 1.27% and 1.45% supported by strong gold and platinum counters. The rand strengthened 0.81%, 0.70% and 0.56% against the euro, dollar and pound to R10.23/€, R7.82/$ and R12.25/£.

US Jobless Claims rose 377K in the January 21 week (consensus was 370K) from 352K the previous week, while the 4-week Moving Average to 377.5K from 379K. The US manufacturing sector continued to improve following a stronger than expected 3.0% m/m rise in new orders for durable goods in December (consensus was 2.2% m/m) from an upward revised 4.3% m/m in November. 

In line with calls made by IMF Chief, Christine Lagarde, the EU’s top economic official, Oli Rehn, also warned that more than the planned €130bn may be needed to fund Greece’s next rescue package. Similarly, Greece’s private creditors are insisting that other public organisations, notably the ECB, also take part in the debt swap deal.

Japan’s Prime Minister, Yoshihiko Noda, indicated that he expects the Japanese central bank to stem the continued strength of the yen, which has dampened the country’s exports. SA PPI slowed more than expected to 9.8% y/y in December (consensus was 9.9% y/y) from 10.1% y/y in November.