Market Overview

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

Today’s market is a somewhat greener place in commodities and a mixed bag in equities, compared to yesterday’s opening, with rotation being the name of the game. We see the U.S. market rotating into software and consumer staples, while Asia is rotating out of Korea and Japan, and into Hong Kong and China. The day is also loaded with heavy hitters on both the earnings and economic data fronts, which should, all in all, make for an interesting session.

Tencent (700)

Tencent has benefitted greatly from the current rotation into China and Hong Kong, going up by more than 4% since yesterday. The company has made a great rotation into the Chinese A.I. sector, and subsequently, we’re likely to see gains in the copper industry, as A.I. tech is heavily dependent on the commodity for data centre construction. So keep an eye out for diversified miners like Glencore (GLN), as well as the usuals, Naspers (NPN) and Prosus (PRX).

Local Stocks

Valterra (VAL)

Valterra released its earnings earlier today, with numbers that outperformed expectations by a good margin. As such, we expect it to have a good day.

Naspers (NPN) & Prosus (PRX)

Naspers and Prosus are likely to see gains due to Tencent’s (700) gains. When taking Valterra’s (VAL) earnings into account, it wouldn’t surprise us if we saw a gold drop, as funds are directed towards Naspers and Prosus, as well as Valterra.

Left: Naspers (NPN), right: Prosus (PRX).

Kumba Iron Ore (KIO)

Kumba Iron Ore received its first target price from Standard Bank today, set at R320, which is an increase of 19% from yesterday’s closing price.

Earnings & Economic Data

Today’s aftermarket is loaded with heavy-hitting earnings, as well as the Fed interest rate decision and FOMC statement, which will have a huge impact on the global market.

Pre-Market Earnings

SoFi Technologies (SOFI)

SoFi is a U.S. fintech and money lender, with activities ranging from student loans to insurance and credit cards.

After-Market Earnings

Microsoft (MSFT)

Microsoft is one of America’s largest software companies, and its earnings are likely to have an impact on the sector, which is currently on the receiving end of a rotation in the broader tech sector.

Meta Platforms (META)

Meta is another member of the so-called ‘Magnificent 7’. Like Microsoft (MSFT), it’s considered to be a software company, but Meta is more diversified, with significant activity in A.I., communications, and advertising markets.

Qualcomm (QCOM)

Qualcomm is a U.S. based tech company involved in the development of software, A.I., and hardware, including semiconductors.

Economic Data

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