S&P 500 Futures Slides After Report of Ebola Case in New York City

According to Bloomberg, U.S. stock-index futures have declined today following reports of the first positive Ebola virus case in New York City.

New York times reported that contracts expiring in December on the Standard & Poor’s 500 Index (SPX) lost 0.5 percent as of 9:54 a.m. in Tokyo amid low trading volume. Dow Jones Industrial Average futures fell 0.4 percent, while contracts on the Nasdaq 100 Index slid 0.7 percent.

It is undeniable that market sentiments will take a hit following this diagnosis. This is not good news for the market and the markets do not need this now since markets were showing some degree of stability. As markets open across Africa we will watch to see if these sentiments will spread on the continent’s markets. Though over 4000 people have died from the Ebola virus in Africa and infection rates are currently over 8000, none of the cases have occurred in South Africa. Despite the tight security at all ports of entry, South Africa still remains at risks of exposure to this virus given that some its medical personnel are currently working with aid organizations in Ebola affected region of West Africa and there are daily travels to and from these areas.

South African equities closed lower yesterday with the JSE all-Share Index closing -0.2% lower, falling below analyst’ expectations. However the markets rebound within the day before closing lower following signals of stronger growth in the European economies. As illustrated on table one all indices on the JSE closed lower yesterday.

Table 1: JSE Indices as at 23rd October Market Close

Index Value Move (%) Time*
All Share 48 105 -98 (0.2%) 1715 23 Oct
Fin & Ind 61 393 -110 (0.2%) 1715 23 Oct
Industrial 57 738 -194 (0.3%) 1715 23 Oct
Gold 1 051 -34 (3.1%) 1715 23 Oct
Top 40 42 921 -114 (0.3%) 1715 23 Oc

 

The JSE All-Share Index has shown a 3.89% decline in the past 30 days, this shows greater sell-offs on the exchange. Investors need to continue to identify companies that have reached the bottom and having great fundamentals to invest in.

 

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