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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.
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Short summary of PSG's market commentary for 10 July 2019
South Africa
The JSE closed lower on Tuesday, in line with global financial markets as investors anticipated new catalysts from the US Federal Reserve (Fed), heightening the pressure placed on global risk assets. Shortly after the closing bell, the All Share was down 1.33%.
United States
US stock futures took a dive on Tuesday as investors expressed concerns over a severe blow to earnings as a by-product of the protracted US-Sino trade dispute. At 18h00, the Dow was trading 0.28% in the red.
Europe
European financial markets tracked a broad-based selloff in Asian and American markets on Tuesday as expectations waned for an interest rate cut by the Fed. At 18h10, the FTSE 100 Index had lost 0.17%.
Hong Kong
Shares in Hong Kong continued on a downward spiral for the fourth consecutive day on Tuesday, in line with most global markets, as expectations of an aggressive rate cut by the Fed slowly diminished. At 18h15, the Hang Seng lost 0.94%.
Japan
Japan’s Nikkei recorded marginal gains on Tuesday but the broader market took a knock as Apple Inc and the overall technology sector stumbled following a brokerage downgrade. At the closing bell, the Nikkei gained 0.14%.
Rand
The rand held steady against major global currencies on Tuesday as investors await new catalysts from the Fed and its stance on interest rates moving forward. At 18h20, the rand traded R14.14 against the dollar.
Precious metals
Gold prices fell to a one-week low on Tuesday as the greenback held steady ahead of the Fed’s speech later today. At 18h25, spot gold was up trading at $1 396.28 an ounce.
Oil
Supply disruptions and mounting tensions in the Middle East lifted oil prices on Tuesday while the US-China trade spat continued to weigh heavily on the global economy. At 18h30, a barrel of Brent crude was trading at $64.84.
The JSE closed lower on Tuesday, in line with global financial markets as investors anticipated new catalysts from the US Federal Reserve (Fed), heightening the pressure placed on global risk assets. Shortly after the closing bell, the All Share was down 1.33%.
United States
US stock futures took a dive on Tuesday as investors expressed concerns over a severe blow to earnings as a by-product of the protracted US-Sino trade dispute. At 18h00, the Dow was trading 0.28% in the red.
Europe
European financial markets tracked a broad-based selloff in Asian and American markets on Tuesday as expectations waned for an interest rate cut by the Fed. At 18h10, the FTSE 100 Index had lost 0.17%.
Hong Kong
Shares in Hong Kong continued on a downward spiral for the fourth consecutive day on Tuesday, in line with most global markets, as expectations of an aggressive rate cut by the Fed slowly diminished. At 18h15, the Hang Seng lost 0.94%.
Japan
Japan’s Nikkei recorded marginal gains on Tuesday but the broader market took a knock as Apple Inc and the overall technology sector stumbled following a brokerage downgrade. At the closing bell, the Nikkei gained 0.14%.
Rand
The rand held steady against major global currencies on Tuesday as investors await new catalysts from the Fed and its stance on interest rates moving forward. At 18h20, the rand traded R14.14 against the dollar.
Precious metals
Gold prices fell to a one-week low on Tuesday as the greenback held steady ahead of the Fed’s speech later today. At 18h25, spot gold was up trading at $1 396.28 an ounce.
Oil
Supply disruptions and mounting tensions in the Middle East lifted oil prices on Tuesday while the US-China trade spat continued to weigh heavily on the global economy. At 18h30, a barrel of Brent crude was trading at $64.84.
Our daily update
Yesterday we covered South Africa's exports to and imports from the United States for 2019 so far (January 2019 to May 2019). And the bulk of South Africa's exports to the USA is precious metals and stones such as gold, platinum and diamonds.
The treemap below shows the main product category exports from South Africa to the United States for 2019 so far (covering the months January 2019 to May 2019). As the image shows the bulk of South African exports to the United States falls under Precious Metals, with it making up just under 30% of South Africa's total exports to the USA so far during 2019. This category includes gold, platinum and diamonds.
Read the full SA exports to and imports from the USA article here
The treemap below shows the main product category exports from South Africa to the United States for 2019 so far (covering the months January 2019 to May 2019). As the image shows the bulk of South African exports to the United States falls under Precious Metals, with it making up just under 30% of South Africa's total exports to the USA so far during 2019. This category includes gold, platinum and diamonds.
Read the full SA exports to and imports from the USA 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 South African stock market is still up substantially for the year, with the only negative months so far being the month of May in which markets pulled back pretty sharply. But the markets rebounded in June with it ending up close to 5% for the month.
For the first trading week of July 2019, the market was down just over 1% for the first trading week of the 2nd half of 2019. On the bright side though is the fact that the South African Rand has been very strong recently with it breaking through the R14/$ barrier for the first time in months. Sadly strong jobs numbers in the US reduced the odds of a FED rate cut which saw the US dollar strengthen and the Rand trading well above $14 again.
The second trading week of July 2019 got off to a positive start. But the positive mood was soon spoiled with the markets closing down a substantial -1.34% for the day. The overall South African Stock Exchange is down by -2.13% for July 2019 so far
For more on daily market movements see our 2019 Calendar tracker.
But we as South African investors are losing out in Dollar terms. Largely due to continued Rand weakness not only over the short term but over the last couple of years. We continue to advise investors to take money out of South Africa and invest it offshore. Looking for ideas for investments to make? Go read this article
For the first trading week of July 2019, the market was down just over 1% for the first trading week of the 2nd half of 2019. On the bright side though is the fact that the South African Rand has been very strong recently with it breaking through the R14/$ barrier for the first time in months. Sadly strong jobs numbers in the US reduced the odds of a FED rate cut which saw the US dollar strengthen and the Rand trading well above $14 again.
The second trading week of July 2019 got off to a positive start. But the positive mood was soon spoiled with the markets closing down a substantial -1.34% for the day. The overall South African Stock Exchange is down by -2.13% for July 2019 so far
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