Business & Tech News
World Markets Facing Headwinds: Financial markets in Asia and the US have taken a downward trajectory on concerns that the US could be headed towards a recession. Shares in American chip giant Nvidia dropped by 9,5% alongside other Tech companies including Alphabet, Apple and Microsoft that saw their stock prices plunge with concerns over economic growth countered optimism about the artificial intelligence industry’s outlook. US PMI data released yesterday was the major influence that indicated manufacturing activity was not in positive territory.
Nigeria to receive Chinese Investments: After a meeting between Chinese President Xi Jinping and Nigerian President Bola Tinubu, in bejing yesterday, China announced its intention to drive new manufacturing business development in Nigeria. Furthermore, they announced that the Chinese government will be looking to assist Nigeria with energy and mineral resource developments. China also welcomed Nigeria to its e-commerce and logistics sector and said it wanted to help the West African nation’s economy “diversify and flourish”, according to a joint statement released on Tuesday. According to the Chinese news agency Xinhua, the two countries agreed to “encourage flexible and diverse regional monetary and financial cooperation”, such as local currency swaps, to promote bilateral trade.
Shoprite to Sell Furniture Division: South Africa’s largest retailer group, Shoprite, has confirmed it will sell its furniture business including the OK Furniture and House & Home brands to discount retailer Pepkor, according to an announcement by the company on Tuesday. The purchase represents about 4% of Pepkor’s market capitalisation and will be settled in cash, the company said.
Pepkor, with a market value of $4.50 billion, would indicate that the purchase price would be in the region of $179 million. The furniture division includes over 400 retail stores in South Africa, Botswana, Lesotho, Namibia, Eswatini and Zambia. The deal excludes the Angola and Mozambique operations, but will include the Furniture credit loan book and related insurance arrangements in addition to inventory and certain fixed assets, Pepkor said.
Market News
On Wednesday, major Asian indexes dropped after major stock indexes in New York fell sharply. Investors turned more cautious as new data showed US manufacturing activity remains subdued, with the focus now on key jobs figures due on Friday “Growth concerns are dominating market moves,” Julia Lee at FTSE Russell told the BBC.In New York on Tuesday, the S&P 500 index closed more than 2% lower, while the technology-heavy Nasdaq fell by over 3%.
Nasdaq-listed Nvidia fell by 9.5%, wiping $279bn (£212.9bn) off its stock market valuation. Other US tech giants – including Alphabet, Apple and Microsoft – also saw their shares tumble.On Wednesday morning, Japan’s Nikkei 225 was down 4.4%, South Korea’s Kospi was trading 3% lower and the Hang Seng in Hong Kong dropped by 1.3%. Major Asian technology firms including TSMC, Samsung Electronics, SK Hynix and Tokyo Electron were sharply lower. “Concerns around global growth look to be hitting exporting countries in the region particularly hard,” Ms Lee added.
The highly-anticipated US non-farm payrolls jobs market report is due to be released on Friday.
Markets: The US market PMI data released yesterday hit all major index’s with the S&P 500 index closing more than 2% lower, while the technology-heavy Nasdaq fell by over 3%. This morning, Japan’s Nikkei 225 was down 4.4%, South Korea’s Kospi was trading 3% lower and the Hang Seng in Hong Kong dropped by 1.3%.
Currencies are trading in narrow ranges again this morning, The Dollar is currently trading at 1.1105 against the Euro, at 1.311 against the Pound, and softer against the Yen at 144.91 against the Yen. Emerging Market currencies traded weaker yesterday, and is currently trading at R17.97
Commodities: Gold is softer at $2,485, while Platinum and Palladium are both taking a hit and trading downwards at $907 and $938, respectively. Concerns about the slow global economy growth continues to reduce demand for oil. Brent crude continues to fall and is currently at $73.16 while WTI is trading below the $70 mark at $69.65 currently
Other News Today
South African Electoral Commissioner in Court: Dr Nomsa Masuku, the current head of the Electoral Commission of South Africa (IEC), will appear in the Palm Ridge Commercial Crimes Court in Johannesburg today in connection with fraud charges allegedly committed during her previous employment as the Head of Standard Bank’s Social Corporate Investments (SCI) Programme, prior to her appointment at the IEC. Masuku was arrested by the Serious crimes investigation unit in June 2024.
