Business Maverick

Business Maverick

CoStock Rally Extends; Dollar Lowest Since March: Markets Wrap

Employees work at the Tokyo Stock Exchange (TSE), operated by Japan Exchange Group Inc. (JPX), in Tokyo, Japan, on Friday, Dec. 28, 2018. Japanese shares fell, with the Topix index capping its worst annual performance since 2011, in a year that saw U.S.-China trade tensions deal a heavy blow to investor sentiment. Photographer: Kiyoshi Ota/Bloomberg

The global rally in stocks showed no signs of abating Wednesday as investors continued to bet on a quick economic recovery from the coronavirus pandemic. The dollar hit the lowest level since late March.

South Korean shares led gains in Asia after the country detailed a third round of fiscal stimulus. Indonesia’s rupiah was the outperformer in currencies, after record orders at a local bond auction. Treasuries dipped. U.S. equity futures pushed up after the S&P 500 closed at its highest since early March. Brent crude extended its rebound above $40 as investors eyed a potential extension of record production curbs by OPEC+.
Asia stocks are most expensive in ten years as they near overbought territory

Global stocks are trading at a three-month high as businesses continue to reopen around the world and manufacturing gauges show economies stabilizing following coronavirus shutdowns. That’s despite a slew of risks still on the horizon, including tense U.S.-China relations that may jeopardize a hard-won trade deal.

Traders are also looking past civil and political unrest in the U.S. Chicago will enter the next phase of its reopening plan as scheduled on Wednesday, protests notwithstanding.

“If I look at the markets, I see a V-shaped recovery,” Mark Mobius, co-founder at Mobius Capital Partners, said on Bloomberg TV. “That’s what the markets are telling us.”

Elsewhere, the Australian dollar pared gains after data showed the economy retreated on a quarterly basis in the first three months of the year. On Tuesday, European shares climbed to a 12-week high as Chancellor Angela Merkel sought to thrash out a second aid package for Germany.

Here are some key events coming up:

  • In Europe, the ECB is expected to top up its rescue program with an additional 500 billion euros of asset purchases at a meeting on Thursday. Anything less than an expansion would be a big shock, Bloomberg Economics said.
  • The U.S. labor market report on Friday will probably show American unemployment soared to 19.6% in May, the highest since the 1930s.

These are the main moves in markets:


  • Futures on the S&P 500 Index rose 0.2% as of 12:10 p.m. in Tokyo. The gauge rose 0.8% on Tuesday.
  • Japan’s Topix index advanced 0.6%.
  • Hong Kong’s Hang Seng rose 1.2%.
  • Shanghai Composite index added 0.3%.
  • South Korea’s Kospi index climbed 2.5%.
  • Australia’s S&P/ASX 200 Index added 1%.
  • Euro Stoxx 50 futures rose 1.1%.


  • The yen was at 108.57 per dollar, up 0.1%.
  • The offshore yuan dipped 0.2% to 7.1176 per dollar.
  • The euro bought $1.1196, up 0.2%.


  • The yield on 10-year Treasuries climbed about two basis points to 0.70%.
  • Australia’s 10-year yield climbed about six basis points to 0.97%.


  • West Texas Intermediate crude increased 2.2% to $37.61 a barrel. Brent was at $40.17 a barrel, up 1.5%.
  • Gold held at $1,729 an ounce.

Please peer review 3 community comments before your comment can be posted

[%% img-description %%]

The Spy Bill: An autocratic roadmap to State Capture 2.0

Join Heidi Swart in conversation with Anton Harber and Marianne Merten as they discuss a concerning push to pass a controversial “Spy Bill” into law by May 2024. Tues 5 Dec at 12pm, live, online and free of charge.

A South African Hero: You

There’s a 99.8% chance that this isn’t for you. Only 0.2% of our readers have responded to this call for action.

Those 0.2% of our readers are our hidden heroes, who are fuelling our work and impacting the lives of every South African in doing so. They’re the people who contribute to keep Daily Maverick free for all, including you.

The equation is quite simple: the more members we have, the more reporting and investigations we can do, and the greater the impact on the country.

Be part of that 0.2%. Be a Maverick. Be a Maverick Insider.

Support Daily Maverick→
Payment options