Today

The SA market should drop sharply this morning (-1.3%) following a rout of Australian and Asian markets.

Facebook will start trading on the NASDAQ after raising $16 billion in the biggest initial public offering by a technology company in history and the third largest offering in US history.

Yesterday

World markets continued to decline over concerns of global growth and stability as the euro zone situation worsens and US economic data releases were unimpressive. In response to weak economic releases the DJIA and the S&P 500 fell -1.24% and -1.51% while the DAX, the FTSE 100 and the CAC 40 contracted -1.27%, -1.24% and -1.20%. In Asia, the HangSengdipped -0.31% led down by weakness in the financial sector while the Nikkei225 gained 0.86% boosted by better-than-expected GDP growth. Back home, the JSE All-Share and the Top-40 dipped -0.76% and -0.92% led down by a steep fall in the price of Investec after reporting a 26% drop in full-year earnings. The rand fell -0.54% and -0.30% against the dollar and the euro and lifted 0.25% against the pound to R8.36/$, R10.61/€ and R13.20/£ supported by a higher gold price which bounced off a 4 month low.

According to the Spanish media customers of the troubled Bankia have withdrawn over a billion euros since last week. The banking sector chaos has resulted in investors seeking higher yields for investing in the risky country after a bond auction that saw yields for three- and four- year bonds rise to just below 5%. German Chancellor Angela Merkel stated that she was in agreement with British, French and Italian Prime Ministers that both fiscal consolidation and growth are needed after taking part in a video conference between the four leaders and EU and European Council presidents ahead of the G8 summit. The number of US jobless claims posted in the May 12 week was unchanged following an upwardly revised 370K claim in the prior week reducing the 4-week moving average further to 375K from 379K. US consumer confidence declined to -43.6 in May from -40.4 in April as job growth was seen slowing. US leading indicators contracted -0.1% m/m in April with building permits and initial jobless claims leading the weakness while the spread between short- and long-term rates and factory orders led the positives among the indicators.