Forex News

The JSE index traded higher near the 74,920 level on Friday, in line with major global peers, as traders digested upbeat results from major US technology companies and looked ahead to the release of key U.S. inflation data. On the corporate front, tech companies Naspers and Prosus, alongside resource-linked stocks and industrials were leading the gains. In business news, the board of Anglo American has unanimously rejected BHP’s proposal to merge with it, saying the structure it contemplates is highly unattractive and Anglo will deliver significant value for shareholders on its own. Anglo American is the fourth-biggest stock in the FTSE/JSE Africa All Share Index, with a weighting of 4.3%.

The IBEX 35 rose to 11,070 on Friday, its highest in 3 weeks, taking a lead from Wall Street, as strong tech giants results boosted the sentiment ahead of publication of the US PCE data. The index was driven by Acciona (4.7%), Acciona Energia (4.5%), Banco Sabadell (4.1%), Grifols (2.8%), and Solaria Energia (2.7%). The board of directors of Acciona Energía will propose to its ordinary general meeting of shareholders in June, the distribution of more than 158 million euros in dividends for 2023. The payment will be a gross amount of 0.48 euros per share, a higher-than-expected figure. Meanwhile, Banco Sabadell received an improvement in the target price from Barclays and JP Morgan. Also, heavyweights Banco Santander (2%), Iberdrola (1.3%), and BBVA (1.3%) increased. Iberdrola's target price was revised higher by the fifth analyst house since presenting its accounts. On the negative side, Repsol and Laboratorios Farma dropped by 1% each. Weekly, the index was set for around a 3% gain.

The Hang Seng surged 366.61 points or 2.12% to finish at a 5-month peak of 17,651.15 on Friday, extending its upside momentum for the fifth day as all sectors rallied. Tech stocks led the upturn, jumping near 5% following solid earnings results from Microsoft and Alphabet Inc. The index surged 8.8% for the week, its highest gain in 1-1/2 years, boosted by a move from investment bank HSBC that changed their holdings on Chinese stocks from underweight to neutral. Earlier in the week, UBS upgraded its ratings on China's shares and Goldman Sachs viewed that stock prices will climb 40% this year because of strong earnings and financial guidelines from the State Council. Locally, exports and imports in Hong Kong bounced back in March, up by 4.7% yoy and 5.3%, each. During Q1 of 2024, shipments jumped 11.9% while imports grew 8.0%. Some behemoth stocks enjoyed big gains, such as Tencent Hlds. (2.5%), JD.Com (6.3%), Li Auto (6.2%), Xiaomi Corp. (4.7%), and Semiconductor Manufacturing (3.3%).

Bank lending to households in the Eurozone increased by 0.2% year-on-year to €6.875 trillion in March 2024, easing from a 0.3% rise in the previous month. It was the slowest pace of credit growth since February 2015, as the European Central Bank's tightening measures implemented over the past months continued to weigh on consumer demand. Additionally, lending to companies rose by 0.4% to €5.132 trillion, following a 0.3% advance in February. Overall private sector credit growth, encompassing both households and non-financial corporations, picked up to 0.8% from 0.7%.

The Unicredit Bank Austria Manufacturing PMI came in at 43.5 in April 2024, up from 42.2 in the previous month. It was the 21st consecutive month of contraction but the softest pace since March 2023, primarily driven by a slower fall in new orders, which reached its weakest level since July 2022. Also, the decline in production slowed for the fourth straight month, marking the slowest reduction in a year. Additionally, the rate of factory job shedding showed a slight easing, after the fastest fall in almost 4 years recorded in March. On the price front, although weak demand for inputs persisted, average purchasing costs saw a notable easing in their rate of decline, reaching the weakest point in over a year. This was attributed to strong a competition for new work, prompting Austrian manufacturers to reduce their own prices. Overall, the outlook remained optimistic, with hopes pinned on a potential turnaround in investment and general economic conditions.

The FTSE 100 rose to a fresh record of 8,120 on Friday, buoyed by positive earnings results of the US tech giants and Darktrace rally. The mid-cap firm soared by over 16% on $5.32 billion buyout deal by Thoma Bravo. Domestically, UK consumer sentiment surged to a 2-year high in April, indicating improved households' views on the economy and personal finances. Investors will now await US PCE price data. The top gainers of the day were NatWest (3.3%), Ashtead (2.2%), Scottish Mortgage (2%), Prudential (1.9%), and Rio Tinto (1.9%), NatWest increased after reporting a 27% fall in profit for the Q1 of 2024, less than anticipated. In contrast, Barclays (-2.2%), Anglo American (-1%), and Pearson (-1.7%) declined. Anglo American turned down BHP's proposal, saying the bid sharply undermined the miner and its future prospects. Meanwhile, Pearson fell despite meeting its expectations for underlying sales. Weekly, the index was poised for nearly 3% rise, its best performance in 7 months.

Top commodity losers are Wheat (-3.45%), Corn (-2.48%) and Cotton (-2.14%). Gains are led by Wool (1.21%), Oat (0.91%) and Palm Oil (0.88%).

Top commodity gainers are Silver (1.27%), Copper (1%) and Gold (0.71%).

Frankfurt's DAX 40 index surged by 0.8% to 18,050 points on Friday, driven by gains in the tech sector following the release of positive quarterly results from US tech giants Microsoft and Alphabet. Meanwhile, investors eagerly awaited the release of PCE price inflation data from the US later today, seeking further cues on the timing of Federal Reserve interest rate cuts this year. Noteworthy among individual stocks, Thyssenkrupp soared by 9% after the German firm announced its intention to sell a 20% stake in its steel business to an energy holding controlled by Czech billionaire Daniel Kretinsky.

Top commodity gainers are Natural gas (21.34%), Natural Gas UK GBP (0.55%) and Natural Gas EU Dutch TTF (0.51%). In addition, there was a slight change on Brent Crude Oil (0.23%) and Crude Oil WTI (0.21%).

Spain's retail trade rose by 0.6% year-on-year in March 2024, after a downwardly revised 1.8% increase in the prior month. Spanish retail activity has recorded its 16th consecutive month of growth, although at a notably slower pace compared to the previous month. Sales growth slowed for both food (+0.6% vs +1.3%) and non-food products (+2.5% vs +3.8%), with spending on home equipment showing a more modest increase (+2.8% vs +4.9%) and that on personal equipment declining (-4.6% vs +8.4%).Monthly, retail sales shrank by 0.5% in March, compared with a 0.5% increase in the prior month, mainly influenced by a 1% drop in food sales.

In China, the Shangai Composite Index rose 36 points or 1.17 percent on Friday. Leading the gains are Fuyao Glass Indu (10.01%), Poly Real Estate (8.13%) and Huatai Securities (7.14%).

Spain's unemployment rate rose to 12.29% in the first quarter of 2024, marking the highest rate in a year and surpassing the market consensus of 11.80%. The number of unemployed people increased by 117.0 thousand from the previous three-month period, reaching 2.978 million, while the number of employed individuals fell by 139.7 thousand to 21.250 million. Furthermore, the labor force participation rate declined to 58.63% during the first quarter from 58.84% in the previous period.

The consumer confidence indicator in France fell to 90 in April 2024, edging lower from 91 in the previous month and compared to market forecasts of 92. The latest reading also remains below the long-term average of 100. Consumers were more pessimistic regarding the outlook for the standard of living (-48 vs -42 in March) and their financial situation (-12 vs -9). Meanwhile, the share of households believing it is a favorable time to make major purchases were less negative (-33 vs -34), unemployment prospects decreased (21 vs 22), and future inflation is seen lower (-51 vs -50).

China 10 Year Government Bond Yield decreased to an all-time low of 2.22%. Over the past 4 weeks, China 10Y Bond Yield lost 2.50 basis points, and in the last 12 months, it decreased 50.00 basis points.

European stocks rose Friday as strong results from US tech titans Microsoft and Google-parent Alphabet bolstered the tech sector, while investors eagerly awaited the release of the PCE price data from the US later that day, seeking insights into the Federal Reserve's monetary policy trajectory. Thursday's data, revealing an uptick in first-quarter inflation, hinted that the US central bank might defer interest rate cuts until September. Among individual stocks, Thyssenkrupp soared by 9% after announcing its intention to sell a 20% stake in its steel business, and Amundi climbed 7% as it posted upbeat Q1 inflows. Meanwhile, Airbus fell more than 2% after reporting weaker-than-expected Q1 operating profit and cashflow, while SAAB dropped 1.5% despite upgrading its sales outlook, and Remy Cointreau declined 1% even though it posted better-than-expected sales figures. Finally, Anglo American rejected BHP's £31.1 billion takeover bid, stating that it significantly undervalued the company.

Copper futures climbed toward $4.6 per pound, reaching its strongest levels in two years as investors continued to pile on the metal’s rally, while supply risks persist. Traders also continued to assess the implications of BHP Group’s $39 billion bid for rival Anglo American in a deal that would create the world’s largest copper miner on the market. Moreover, copper prices tracked a rally in other industrial metals including aluminum, nickel, zinc, lead and tin. Meanwhile, Cobre Panama, one of the world’s largest open-pit copper mines, was forced to stop operations in December, leading to a deficit in the global supply of copper concentrate this year. Earlier in April, the US and the UK also prohibited the Chicago Mercantile Exchange and the London Metal Exchange from accepting new Russian production of aluminum, copper and nickel.

GB100 increased to an all-time high of 8130.00 Index Points. Over the past 4 weeks, United Kingdom Stock Market Index (GB100) gained 1.85%, and in the last 12 months, it increased 3.16%.

The personal consumption expenditure price index in the US likely went up 0.3% month-over-month in March 2024, the same as in February. Also, the core index, which excludes food and energy, is set to rise 0.3%, matching the previous month gain. Meanwhile, the annual PCE rate is seen accelerating for a second straight month to 2.6% from 2.5% while the annual core PCE inflation likely fell to 2.6%, the lowest in three years, from 2.8%. The Fed anticipates annual PCE inflation to reach 2.4% this year, with the core rate at 2.6%.

The unemployment rate in Hungary increased to 4.6% in January-March 2024 from 4.1% in the corresponding period of the previous year. The number of unemployed people rose by 30 thousand year-on-year to 229 thousand. Of this total, 126 thousand were men, with their unemployment rate rising to 4.8%, while 103 thousand were women, and their unemployment rate was up to 4.4%. Meanwhile, employment increased by 29 thousand to 4.725 million. The average time spent looking for a job was 8.9 months, with 43% of all unemployed had been looking for a job for less than 3 months and 33% for at least a year.