South Africa: Global equity markets are staging a partial rebound this morning following the recent decline we have seen, triggered by the inverted yield curve of US bonds, which is said to be a precursor to a recessionary environment. The dollar softened late yesterday to push commodity prices back up and help emerging market currencies, such as the rand, renew some strength. Tencent Holdings continues to trade softer in Asia, suggestive of a soft start for major holding company Naspers. The BHP Group is up 1.1% in Australia, suggestive of a positive start for local resource counters. A slightly firmer rand, should it manage to hold onto gains, is supportive of local banking and retail counters.
Economic calendar - key events and forecast (times in GMT)
Source: Daily FX Economic Calendar
12.30pm – US housing starts & building permits (February): starts to fall 6.7% MoM and permits to decrease 1.2% MoM. Markets to watch: US indices, USD crosses
Corporate News, Upgrades and Downgrades
United Utilities said that it expects rising annual sales to be offset by £52 million of exceptional costs. Ocado has signed a partnership deal involving its technology platform with Australian grocery chain Coles. Fevertree reported a 38% rise in pre-tax profit to £61.8 million for 2018, while revenue rose 40% to £237.4 million. Ferguson said that it expects profits towards the lower end of forecasts due to a slowdown in growth after a strong first half. For the half year to 31 January, pre-tax profit rose 13.5% to $679 million and revenue rose 8.2% to $10.85 billion. Bovis Homes upgraded to buy at HSBC
Fresnillo raised to equal-weight at Morgan Stanley
Persimmon upgraded to buy at HSBC
Antofagasta cut to underweight at Barclays
Kingfisher downgraded to reduce at HSBC
Spectris downgraded to sell at Goldman
IGTV featured video
Information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.