On Monday, the JSE followed a positive trend in global markets, while the focus of investors remained on the banking sector. This sentiment was boosted by North Carolina-based First Citizens Bancshares purchasing all loans and deposits of SVB, which gave the Federal Deposit Insurance Corp equity appreciation rights in its stock valued at up to $500 million. This move helped ease concerns of a credit crunch and systemic bank stress, providing respite for markets after a few weeks of negative news.
However, in the local markets, the Top 40, Resources 10, Financial 15, and Industrial 25 sectors all closed down. The rand also continued to weaken, reaching an intraday low of R18.3488/$ due to ongoing uncertainty and a stronger dollar. Meanwhile, on the commodities front, Brent Crude and WTI Crude were trading at $77.63 and $73.14 per barrel respectively. Oil prices increased on Monday as Turkey halted the transportation of crude oil from Kurdistan through a pipeline due to an arbitration ruling that upheld the requirement of Baghdad's consent to transport the oil. Moreover, oil prices were expected to receive ongoing support from signs of recovering Chinese demand, as China's crude oil imports are forecasted to rise by 6.2% in 2023 to 540 million tonnes, as per a research unit of China National Petroleum Corp's annual forecast on Monday. According to Teng, positive data from China's manufacturing and services PMIs would significantly drive the oil prices up by further improving the demand outlook. Meanwhile, a preliminary Reuters poll on Monday revealed that the US crude oil inventories would likely increase by around 200,000 barrels last week.
Figure: Brent Crude Oil Historical Chart (Source: ThinkTrader Web)
Gold, platinum, and palladium spot prices were at $1954.10, $971.48, and $1405.61. Across the globe, the S&P 500, Dow Jones, and Nasdaq all closed up, while the FTSE 100, DAX, and Heng Seng closed down.
Global Market Moves (27 March 2023)
Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
Learn and earn more today.
Visit our Education Centre