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PSG daily investment update 10 May 2019
Date: 10 May 2019 Category: Stock Market |
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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 rant at the end.
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Short summary of PSG's market commentary for 10 May 2019
South Africa
The JSE slipped to its lowest level in four months a day after the general elections, amid risk-off global trade. Shortly after the closing bell, the All Share plunged 2.67%.
United States
US stock index futures tumbled on Thursday as Trump fuelled trade tensions with China, hiking tariffs on $200 billion worth of Chinese goods by 25%. At 19h00, Dow Jones futures had lost over 0.80%.
Europe
European shares traded lower on Thursday as investors avoided riskier assets amid fears of an escalating trade war that could damage the global economy. At 19h15, the pan-European Stoxx 600 lost 1.65%.
Hong Kong
Shares in Hong Kong plunged on Thursday as investors voiced out concerns over the US-China angst and how it could affect global growth. Hang Seng ended the day 2.39% in the red.
Japan
The Nikkei recorded losses for a fourth consecutive day on Thursday as investors exercised caution ahead of the next round of trade talks between the world’s largest economies. At 19h30, the Nikkei had lost 0.96%.
Rand
The rand was firmer against major global currencies on Thursday as counting continued after SA’s general elections. At 19h35, the rand traded at R14.34 against the dollar.
Precious metals
Gold prices steadied on Thursday as demand for government bonds and the yen trimmed gains for the safe-haven metal. At 19h40, spot gold was up trading at $1 284.59 an ounce.
Oil
Oil prices slipped on Thursday as the US-Sino trade dispute outweighed upward pressure from declining US crude inventories. At 19h45, a barrel of Brent crude was trading at $70.60.
The JSE slipped to its lowest level in four months a day after the general elections, amid risk-off global trade. Shortly after the closing bell, the All Share plunged 2.67%.
United States
US stock index futures tumbled on Thursday as Trump fuelled trade tensions with China, hiking tariffs on $200 billion worth of Chinese goods by 25%. At 19h00, Dow Jones futures had lost over 0.80%.
Europe
European shares traded lower on Thursday as investors avoided riskier assets amid fears of an escalating trade war that could damage the global economy. At 19h15, the pan-European Stoxx 600 lost 1.65%.
Hong Kong
Shares in Hong Kong plunged on Thursday as investors voiced out concerns over the US-China angst and how it could affect global growth. Hang Seng ended the day 2.39% in the red.
Japan
The Nikkei recorded losses for a fourth consecutive day on Thursday as investors exercised caution ahead of the next round of trade talks between the world’s largest economies. At 19h30, the Nikkei had lost 0.96%.
Rand
The rand was firmer against major global currencies on Thursday as counting continued after SA’s general elections. At 19h35, the rand traded at R14.34 against the dollar.
Precious metals
Gold prices steadied on Thursday as demand for government bonds and the yen trimmed gains for the safe-haven metal. At 19h40, spot gold was up trading at $1 284.59 an ounce.
Oil
Oil prices slipped on Thursday as the US-Sino trade dispute outweighed upward pressure from declining US crude inventories. At 19h45, a barrel of Brent crude was trading at $70.60.
Our daily update
With election results trickling through the real surprise for us is the fact that the DA once again failed to gain votes while the ANC lost votes. Most of the votes that left the ANC moved over to the EFF, and votes that would have gone to the DA seems to have moved to the FF+. Interesting times for SA politics. But the one thing is clear, the DA just cannot take advantage of ANC weakness. In previous elections votes that left the ANC went to COPE and not the DA, and now its going to EFF instead of the DA.
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 after 4 consecutive months of positive returns on the JSE All Share Index, the month of May kicked of trading on a positive note. And then Donald Trump striked threatening to raise tariffs on billions worth of goods imported from China. So the last three trading days saw big negative trading days on the JSE. The market has been given a proper klap from Donald Trump and the tariffs it hiked on Chinese goods.
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