|
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 10 December 2019
South Africa
The local markets closed flat on Monday, following the lead from global markets, as investors sought catalysts from the US-China trade negotiations and the upcoming global monetary policy meetings. The All Share lost 0.07%.
United States
Wall Street opened lower on Monday, as weak export data from China rekindled concerns over the extent of damage caused by an ongoing US-Sino trade war. At 20h15, the Dow Jones was down by 0.27%.
Europe
On Monday, Tullow Oil’s Chief Executive Officer resigned, and the group scrapped its dividend, weighing on European markets. The pan-European STOXX 600 Index fell 0.24%.
Hong Kong
Asian shares ended Monday flat due to growing concerns over the disappointing Chinese export data and ongoing protests in Hong Kong.
Japan
On Monday, the Nikkei made up some ground on the back of positive US jobs data released on Friday; however, these gains were offset by worries over the Chinese economy. The Nikkei closed up 0.33%.
Rand
The local currency took a knock on Monday due to a fifth consecutive day of load shedding and Eskom increasing cuts to stage 6. At 20h15, the rand traded R14.68 to a dollar.
Precious metals
Investors looked to safe-haven assets on Monday, boosting gold prices, ahead of the 15 December deadline where the US could raise tariffs on Chinese imports. At 20h15, an ounce of gold cost $1 460.51.
Oil
Oil prices slipped on Monday as the fourth consecutive decline in Chinese exports renewed fears about the global economic fallout because of the protracted US-China trade war. A barrel of Brent crude traded at $64.70 at 20h15.
The local markets closed flat on Monday, following the lead from global markets, as investors sought catalysts from the US-China trade negotiations and the upcoming global monetary policy meetings. The All Share lost 0.07%.
United States
Wall Street opened lower on Monday, as weak export data from China rekindled concerns over the extent of damage caused by an ongoing US-Sino trade war. At 20h15, the Dow Jones was down by 0.27%.
Europe
On Monday, Tullow Oil’s Chief Executive Officer resigned, and the group scrapped its dividend, weighing on European markets. The pan-European STOXX 600 Index fell 0.24%.
Hong Kong
Asian shares ended Monday flat due to growing concerns over the disappointing Chinese export data and ongoing protests in Hong Kong.
Japan
On Monday, the Nikkei made up some ground on the back of positive US jobs data released on Friday; however, these gains were offset by worries over the Chinese economy. The Nikkei closed up 0.33%.
Rand
The local currency took a knock on Monday due to a fifth consecutive day of load shedding and Eskom increasing cuts to stage 6. At 20h15, the rand traded R14.68 to a dollar.
Precious metals
Investors looked to safe-haven assets on Monday, boosting gold prices, ahead of the 15 December deadline where the US could raise tariffs on Chinese imports. At 20h15, an ounce of gold cost $1 460.51.
Oil
Oil prices slipped on Monday as the fourth consecutive decline in Chinese exports renewed fears about the global economic fallout because of the protracted US-China trade war. A barrel of Brent crude traded at $64.70 at 20h15.
Advertisement (and yes South Africans can buy from Amazon as they deliver to SA)
Our daily update
The extract below covers South Africa's food inflation and food product imports inflation in more detail
While the food product import inflation is far more volatile than that of the official food inflation, over the period in question the average food inflation rate is sitting at 6.5% while the average food product imports inflation rate is sitting at 4.2%. So the consumer inflation rate is far greater than the average inflation rate of food product imports. Part of the reason for this is "sticky prices" which we discuss a little later in this article.
Volatility in the import prices can be attributed to a large extent to some of the following reasons:
Read the full article here
While the food product import inflation is far more volatile than that of the official food inflation, over the period in question the average food inflation rate is sitting at 6.5% while the average food product imports inflation rate is sitting at 4.2%. So the consumer inflation rate is far greater than the average inflation rate of food product imports. Part of the reason for this is "sticky prices" which we discuss a little later in this article.
Volatility in the import prices can be attributed to a large extent to some of the following reasons:
- Different importers importing from different suppliers from various countries
- Importers constantly looking for new suppliers supplying at cheaper prices
- Exchange rate volatility
- International commodity prices (especially with imports such as maize, wheat, soy etc)
Read the full article 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 November so the JSE All Share index end -1.75% in the red. And after the first trading week in December 2019 the JSE All Share index is in the red by -0.11% for the first 10 days of the last trading day of December
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
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