South African Markets - Factors to watch on Dec 17

The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect South African markets on Wednesday.
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GLOBAL MARKETS
Asia stocks rose and the U.S. dollar remained under pressure on Wednesday after the Federal Reserve cut rates to a record low, paving the way for regional policymakers to take more aggressive actions to support growth.

Government bonds rallied after the Fed also said it would use unconventional means to revive the U.S. economy from a deep recession, including buying long-dated Treasuries, as other central banks were expected to slash their benchmark rates, ushering in an unprecedented era of cheap money.

SOUTH AFRICAN MARKETS
South African stocks firmed on Monday as renewed hopes for a U.S. auto industry bailout buoyed platinum and diversified miners and MTN rose after it said it would sell shares to black investors.

The rand softened against the dollar in thin trade as importers covered their positions ahead of the Christmas and New Year holidays, while government bonds rallied sharply as the market priced in aggressive interest rate cuts next year.

The Johannesburg Top-40 index of blue-chip stocks climbed 2.39 percent to 19,879.83 points while the All-share index rose 2.11 percent to 21,805.83 points.
Tuesday was a public holiday in South Africa.

For Monday's South African financial markets closing report, double click on
ARM
South African diversified mining group African Rainbow Minerals Ltd (ARM) said on Tuesday it would form a 50-50 joint venture with Brazilian miner Vale.

SOUTH AFRICAN POLITICS
The new South African party founded by breakaway ANC officials named former defence minister Mosiuoa Lekota as leader at its formal launch on Tuesday and pledged to campaign on a pro-business platform.

The Congress of the People, founded two months ago by loyalists of ousted President Thabo Mbeki, represents the biggest challenge to the African National Congress since it took power at the end of apartheid in 1994.

GOLD
Gold recoiled on Wednesday, giving back more than $10 after a strong showing overnight on the back of the latest U.S. interest rate cut

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The U.S. Federal Reserve cut its target for overnight rates to a record low zero to 0.25 percent, and said it would employ "all available tools" to dispel a year-long recession
Spot gold was fetching $847.20 an ounce against New York's last notional close of $857.35. In the last week, gold has gained as much as 11 percent

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WALL STREET
U.S. stocks rallied on Tuesday after the Federal Reserve rewrote its playbook by slashing borrowing costs to a record low, even zero, and pledging more unconventional steps to fight the deepest recession in generations.

Banks led the charge higher, spurred both by the Fed's move to cap its target lending rate at a quarter percentage point and by a quarterly loss from Wall Street icon Goldman Sachs that was not as gruesome as many feared. Goldman's stock gained more than 14 percent, outshining an 11 percent advance in the S&P 500's financial index.

EMERGING MARKETS

Some of the main stories out of the South African press:
BUSINESS DAY

- New-look COPE leaders "ready to take on ANC"
- Saudi Arabia wants historic OPEC cutback
- U.S. Fed takes drastic action on rates
BUSINESS REPORT
- Euro Zone employment zone drops
- Two-pronged tactic to drive MTN expansion
- COPE backs Finance Minister Trevor Manuel's policies, but favours non-racial means tests
THE STAR
- Electrified supporters on their feet chanting "Boesak"!
- The ANC has neglected its people, Zuma tells MK vets