Sanlam Private Wealth Morning Digest 23 September 2020

Local Markets

The JSE continued its losing streak, posting its sixth straight negative close, with both the benchmark and the blue-chip indices hovering around three-month lows. The All Share index was down 0.1% on Tuesday, while the Top 40 index closed down 0.05%. The fall was largely led by mining companies, though banks, often known to be well capitalised, bucked the trend with the banking index rising 1.06%. Bonds weakened with the yield on benchmark 2030 government paper up 11 basis points to 9.39%.

American Markets

US stocks rose Tuesday, recovering from intraday losses as the bulls appeared to overcome worries about renewed coronavirus lockdowns in Europe and rising political uncertainty in the US. Investors also watched testimony by Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin before a House panel. Bitterness in Washington has investors worried about the dimming prospects for an agreement between congressional Democrats and the White House on additional fiscal aid during the pandemic.