Market Overview
The following is a partial recap of the market analysis shared during today’s morning Discord call.
Yesterday’s market was a very eventful one, with earnings, data, and a massive bounce in the U.S., where the S&P 500 made a full comeback from Wednesday’s drops. Today we see a lot of greens in commodities and equities, though gold seems to be struggling again, as the dollar regains some of its lost ground. We also saw Amazon (AMZN) soar after its earnings, while software continued to perform well for a fourth day in a row, which should make for an overall interesting session today.
S&P 500 Index
The S&P 500’s drop on Wednesday was in part due to the FOMC and interest rate decisions by the Fed. But there was also the squeezing of a large A.I. hedge fund, first to the downside, and then back up, which will likely serve as a cautionary tale in the future, once more details come out. Subsequently, the index has made a comeback from the drops of Wednesday, and is currently in the green, so we hope you were able to catch that rally!
Tencent (700)
Tencent is interestingly able to stay in the green, despite the flows out of Hang Seng (China), following yesterday’s rally in U.S. tech. Hang Seng itself is currently flat, which is somewhat reassuring, and makes Naspers (NPN) and Prosus (PRX) the potential play today. As for Tencent itself, HK$480 remains the level of resistance to look out for, with the upcoming earnings on 12th August having great potential to serve as the catalyst to break that level. This could once again be used to play with Naspers and Prosus.
Local Stocks
Sasol (SOL)
With the dollar going up and oil coming down, it’s unlikely that Sasol will be able to break R200 today. With a real possibility that it drops down to R180, it might not be the worst opportunity to take some profit today.
AngloGold Ashanti (ANG)
The dual-listed gold miners performed rather well in the American market, with AngloGold doing the best out of the bunch, growing by around 2%. Its Q2 numbers are scheduled to come out around noon today. This could also be interesting if you’re holding shares in any of the other gold miners, as they tend to move in tandem.
Earnings & Economic Data
Today has a few interesting earnings, mainly in the oil sector, while China’s manufacturing PMI is the biggest point of economic data to look into.
Pre-Market Earnings
Moderna (MRNA)
Moderna is an American pharmaceutical company, specialising in the treatment of RNA viruses with mRNA vaccines.
Chevron (CVX)
Chevron is one of the largest oil companies in the U.S., with a multinational operation in over 180 countries.
Exxonmobil (XOM)
Exxon is the largest oil company in the U.S., as well as the world, with a large number of well-known brands and operations.
Economic Data
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