Netflix likely to cheer JSE
Netflix put stock markets in a celebratory mood ahead of the JSE’s opening on Wednesday morning.
The TV-streaming company’s share price jumped 9.19% to $336.06 on Tuesday after it reported subscriber numbers reached 7.41-million — as opposed to the expected 6.35-million.
Netflix helped the Nasdaq index rally 1.74%. The S&P 500 index rose 1.07%, which a strengthening rand cut to a 0.77% rise to R32.54 for the CoreShares S&P 500-tracking exchange-traded fund.
The rand was trading at R12 to the dollar, R14.86 to the euro and R17.16 to the pound at 6.50am.
Tokyo’s Nikkei 225 average was up 1.44% as Japanese Prime Minister Shinzo Abe met US President Donald Trump at Trump’s Mar-a-Lago golf resort.
"While Japan and South Korea would like us to go back into TPP [the Trans-Pacific Partnership trade arrangement], I don’t like the deal for the United States. Too many contingencies and no way to get out if it doesn’t work. Bilateral deals are far more efficient, profitable and better for OUR workers. Look how bad WTO is to U.S." Trump tweeted at about 5am South African time.
While Japan and South Korea would like us to go back into TPP, I don’t like the deal for the United States. Too many contingencies and no way to get out if it doesn’t work. Bilateral deals are far more efficient, profitable and better for OUR workers. Look how bad WTO is to U.S.— Donald J. Trump (@realDonaldTrump) April 18, 2018
March’s inflation, as measured by the annual change in the consumer price index (CPI), will be reported by Statistics SA at 10am.
The economists’ consensus from a poll done by Trading Economics predicts it will have accelerated slightly from February’s 4%.
The government-set retail price of petrol was cut by 36c a litre in March, and the wholesale price of regular sulphur diesel by 47c a litre, which should help mitigate rising meat and other prices.
The Reserve Bank’s monetary policy committee, which uses expected changes in inflation to set interest rates, is scheduled to announce its next decision on May 24.
After cutting its repo rate by 25 basis points to 6.5% at its last meeting in March, the central bank is unlikely to change interest rates again in the near future.
Stats SA is scheduled to release February’s retail sales figures at 1pm, with growth expected to slow from January’s 3.1% to about 2.8%.
"Credit extension to households, although improved, remains tight, with growth in unsecured lending averaging 3% annual growth since February last year. Added to this are high unemployment rates," Investec Bank economist Lara Hodes said in her weekly note e-mailed on Friday.