Market Overview

The following is a partial recap of the market analysis shared during today’s morning Discord call.

We start the day with risk-off sentiment, as the Rand and the South African market open weaker. This weakness is shared across most of the commodity space, with metals plummeting anywhere between 0.45% and shy of 1.5%. Meanwhile, oil prices have risen by 3.7%, which should help Sasol (SOL) grow. We also saw the American market trading sideways near its all-time high yesterday, which gives the impression that it will continue moving sideways or give some of its gains away, as it feels rather unlikely for its growth to continue with a strong headline or two.

Gold

Gold saw marginal growth yesterday, but it failed to break the previous highs, as $4580/oz remains the level of resistance. This could be caused by the lack of resolution in the Middle East and Ukraine, as gold is usually sold when major wars intensify. Another factor is the upcoming IPOs (Initial Public Offering) such as SpaceX, which has likely caused more than one fund manager to sell their gold to have liquid cash on hand.

Tencent (700)

Tencent gave up some of yesterday’s gains this morning. It remains unclear when its new A.I. chatbot project will go online, and the same can be said about other operational details. This drop will likely impact Naspers (NPN) and Prosus (PRX) starting prices as well. We recommend keeping an eye on Tencent today to see if it continues to drop or manages to go sideways before moving up again.

Local Stocks

Investec (INP)

Investec traded very well yesterday as it’s rumoured to enter the FTSE100, replacing Mondi (MNDI). We expect it to see high volumes today.

British American Tobacco (BTI)

BTI traded decently after-hours in the American market. We expect a bounce this morning due to the weakness in the Rand.

Earnings & Economic Data

Most of today’s notable earnings are concentrated in the tech sector, with Macy’s (M) as the pre-market exception.

Pre-Market Earnings

Macy’s (M)

Macy’s is the largest U.S. department store company, with products ranging from apparel to furniture.

After-Market Earnings

Broadcom (AVGO)

Broadcom is a diverse tech multinational based in the U.S. that produces software and semiconductors.

CrowdStrike (CRWD)

CrowdStrike is an American cybersecurity company, with a very green month in May.

C3.ai (AI)

C3.ai is an American A.I. company which appears to be making a comeback after a period of significant drop.

Economic Data

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