vestact posted: " Market Scorecard Yesterday, US markets opened in the red, and pushed lower after hawkish comments from Fed officials indicating interest rates could be higher for longer if inflation persists. New York Fed President John Williams said "there's sti" Vestact - Money with a dash of funny
Yesterday, US markets opened in the red, and pushed lower after hawkish comments from Fed officials indicating interest rates could be higher for longer if inflation persists. New York Fed President John Williams said "there's still more work to do" to bring down prices. US stocks had mounted a strong recovery in recent weeks on optimism that inflation is cooling, but comments like these will inject fresh volatility into the system.
In company news, Meituan shares are up over 9.5% this morning after the Chinese internet giant released a surprisingly strong report thanks to a 28% jump in revenue as Covid lockdowns drive meal deliveries higher. Elsewhere, Diamondback Energy dropped 3.7% as energy companies fell along with the oil price.
At the end of the day, the JSE All-share was up 0.30%, the S&P 500 lost 1.54%, and the Nasdaq was 1.58% lower.
Our 10c Worth
Byron's Beats
Visa released their monthly metrics from October which indicated that despite horrible global inflation, people are still spending. Global processed transactions increased 40% from 2019, slightly above the 39% expected.
The US lead the way with a 47% increase while cross-border came in 37% higher. Cross-border eCommerce grew by 58% and cross-border travel grew by 19%. Remember these are all compared to 2019 levels because 2020 and 2021 were such strange years, especially for Visa.
From a macro perspective, this data shows the conflicting world we are currently living in. We have a pretty strong consumer hungry to travel and spend. But at the same time, they are facing roaring inflation.
Visa has had a decent year compared to many other stocks. It opened the year at $216 and now trades at $212. So basically flat. Over the same period the S&P 500 is down 17%.
Michael's Musings
I've mentioned a few times how I think the JSE needs more competition. It is effectively a monopoly, charging monopoly prices. For example, it costs Vestact more for 1 month of JSE trade data than it does for a year's worth of US trade data.
Over the last few days, three big-name companies announced that they will be listing on A2X - Woolworths, Truworths and Life Healthcare - taking the total number of companies listed on the exchange to 92. I've seen the listing SENS announcements trickle in over the years, but I was surprised to see how many companies are now listed on the exchange. Including the likes of Naspers and Aspen. See the full list here - shares available to trade.
Well done to A2X. Next stop - 100 listings.
Bright's Banter
Online sales for Black Friday set a record $9.12 billion in the US, up 2.3% year-on-year or up 23% on the last pre-pandemic year, according to Adobe Analytics. Electronics purchases jumped 221% when compared to an average October day. Interestingly, 48% of customers used their smartphones to purchase goods, up from 44% last year.
Americans without cash money didn't want to miss the deals either, this meant buy now, pay later orders jumped 78% on Black Friday when compared to the previous week. What's even more impressive is that Americans are projected to have spent over $11.2 billion on Cyber Monday (yesterday).
Historically, it makes financial sense for consumers to hold out for Black Friday, especially if you have big-ticket items like furniture to buy. Now let's be honest, who here scrolled, tapped, and clicked their way to something they didn't need just because it was on sale?
Asian markets are mostly up this morning, led by a rebound in Chinese stocks as nationwide strikes over Covid lockdowns eased. Benchmarks in Hong Kong, mainland China and South Korea rallied, while Japan fell.
Oil rebounded from its lowest level in 11 months on speculation that the OPEC oligopoly and its allies will continue cutting supply in response to weakening global demand.
US equity futures are up in early trade. The Rand is trading at around R17.06 to the US Dollar.
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