|
Related Topics |
|
In our continued efforts to give our readers a broad number of views, opinions and information, we continue to provide PSG's daily market updates and add our own daily inputs in at the end.
|
|
Short summary of PSG's market commentary for 3 September 2019
South Africa
The JSE closed in the red on Monday, after investors had to digest new developments in the US-China trade war. The JSE All Share fell 0.86%.
United States
Washington began imposing 15% tariffs on a variety of Chinese goods on Sunday, including footwear, smart watches and flat-panel televisions, as Beijing began imposing new duties on US crude. US markets were closed for Labour Day on Monday. However, US President Donald Trump said both sides would still meet for talks later in September.
Europe
European shares rose on Monday despite fragile sentiment as the US and China kicked off the latest round of tit-for-tat tariffs on each other’s goods. Just after the JSE close the FTSE 100 was up by 1.24%, France’s CAC 40 by 0.23% and Germany’s DAX 30 by 0.18%.
Hong Kong
China lodged a complaint against the US through the World Trade Organisation (WTO) for the 15% tariff on Chinese imports, which came into effect on 1 September. At their meeting at the G20 summit in June, the US vowed it would not impose further tariffs on China. Despite this the Shanghai Composite Index gained 1.10% yesterday.
Japan
Japanese shares slipped on Monday after the US and China imposed more tariffs on each other’s goods, escalating a dispute that is increasingly weighing on export-reliant Asia and disrupting global trade. The Nikkei closed down 0.41%.
Rand
The rand weakened slightly on Monday afternoon, after news reports that China lodged a complaint against the US with the WTO about the US tariffs which came into effect on 1 September.
Precious metals
Gold rose on Monday after the US and China imposed new tariffs on each others' goods but a firmer dollar limited the precious metal's upside. At 21h00, an ounce of spot gold traded at $1 529.18.
Oil
Oil prices weakened on Monday after new tariffs imposed by the US and China came into force, raising concerns about a further hit to global growth and demand for crude. At 21h00, a barrel of Brent crude traded at $59.05
The JSE closed in the red on Monday, after investors had to digest new developments in the US-China trade war. The JSE All Share fell 0.86%.
United States
Washington began imposing 15% tariffs on a variety of Chinese goods on Sunday, including footwear, smart watches and flat-panel televisions, as Beijing began imposing new duties on US crude. US markets were closed for Labour Day on Monday. However, US President Donald Trump said both sides would still meet for talks later in September.
Europe
European shares rose on Monday despite fragile sentiment as the US and China kicked off the latest round of tit-for-tat tariffs on each other’s goods. Just after the JSE close the FTSE 100 was up by 1.24%, France’s CAC 40 by 0.23% and Germany’s DAX 30 by 0.18%.
Hong Kong
China lodged a complaint against the US through the World Trade Organisation (WTO) for the 15% tariff on Chinese imports, which came into effect on 1 September. At their meeting at the G20 summit in June, the US vowed it would not impose further tariffs on China. Despite this the Shanghai Composite Index gained 1.10% yesterday.
Japan
Japanese shares slipped on Monday after the US and China imposed more tariffs on each other’s goods, escalating a dispute that is increasingly weighing on export-reliant Asia and disrupting global trade. The Nikkei closed down 0.41%.
Rand
The rand weakened slightly on Monday afternoon, after news reports that China lodged a complaint against the US with the WTO about the US tariffs which came into effect on 1 September.
Precious metals
Gold rose on Monday after the US and China imposed new tariffs on each others' goods but a firmer dollar limited the precious metal's upside. At 21h00, an ounce of spot gold traded at $1 529.18.
Oil
Oil prices weakened on Monday after new tariffs imposed by the US and China came into force, raising concerns about a further hit to global growth and demand for crude. At 21h00, a barrel of Brent crude traded at $59.05
Advertisement (and yes South Africans can buy from Amazon as they deliver to SA)
Our daily update
Our sister site covered the latest earnings report of Union Pacific, one of the largest goods train operators in the United States.
Based on the group's latest financial results and their outlook we value the group's stock at $174.80 a share. Thus at its current price it offers a bit of value considering it is about $15 dollars below our target (full value price) for the group's shares. Concerns regarding the strength of the US economy might place a damper on the group's future earnings potential if the US economy weakens significantly as some economists and market commentators are predicting.
Read the full valuation here
Read the full valuation here
Our JSE All Share index daily performance calendar
Visit our JSE Calendar tracker page for a expanded version of the calendar below
The graphic below provides the daily returns of the JSE All Share Index (J203) on a calendar chart. Provides a great overview of the All share index over the course of the month. It will be updated daily with our daily investment update as received from PSG.
So the month of September we go. While the month of August was negative by -1.73% lets see what the month of September holds for the South African stock market.
There are continued and growing concerns about a global slow down largely driven by the trade ware between the US and China. Continued tariffs by the US on Chinese goods and the retaliation by China by raising tariffs on US goods keeps hurting markets and global economic growth, as the world's two biggest economies continue to stand off in this trade war.
For more on daily market movements see our 2019 Calendar tracker.
But we as South African investors are losing out in Dollar terms. Largely due to continued Rand weakness not only over the short term but over the last couple of years. We continue to advise investors to take money out of South Africa and invest it offshore. Looking for ideas for investments to make? Go read this article
There are continued and growing concerns about a global slow down largely driven by the trade ware between the US and China. Continued tariffs by the US on Chinese goods and the retaliation by China by raising tariffs on US goods keeps hurting markets and global economic growth, as the world's two biggest economies continue to stand off in this trade war.
For more on daily market movements see our 2019 Calendar tracker.
But we as South African investors are losing out in Dollar terms. Largely due to continued Rand weakness not only over the short term but over the last couple of years. We continue to advise investors to take money out of South Africa and invest it offshore. Looking for ideas for investments to make? Go read this article