Sanlam Private Wealth Morning Digest 25 November 2020

Local Markets

Local stocks had a largely mixed day, with the two main indices swinging between positive and negative territories and ending broadly stable amid stronger local inflation data and rising global coronavirus cases. The benchmark All Share index closed down 0.03%. The blue-chip Top 40 index ended 0.2% lower. South Africa`s consumer price index (CPI) rose 3.3% in annual terms, versus analysts` expectations for a 3.1% rise and a 3.0% reading in September, well within the central bank`s target of 3-6%.

American Markets

The Dow Jones fell yesterday, taking a breather after reaching a significant milestone, while traders pored over disappointing unemployment data. The Labor Department said that 778,000 people filed for unemployment benefits for the first time last week. Economists polled by Dow Jones expected initial jobless claims to come in at 733,000. The S&P 500 dipped 0.2 after reaching an all-time closing high in the previous session, while the Nasdaq Composite outperformed, rising 0.5%. The Federal Reserve released the minutes from its meeting earlier this month. That summary showed Fed officials discussing ways of providing more accommodation to the economy as the recovery from the coronavirus pandemic continues.