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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 12 July 2019
South Africa
The JSE closed in the red on Thursday following an 8% decline in local bond yields, while the local currency peaked at an intra-day best of R13.85/$. Shortly after the closing bell, the All Share lost 0.56%.
United States
US stocks traded higher on Thursday after the main indexes on Wall Street peaked at record highs, following US Federal Reserve (Fed) chair Jerome Powell’s dovish stance on monetary policies, affirming the case for an interest rate cut in the near future. At 18h50, the Dow was trading 0.72% in the green.
Europe
European shares maintained a four-day losing streak on Thursday following apprehensions over corporate earnings and trade countered a rally sparked by Powell’s testimony. At 18h55, the FTSE 100 Index and the DAX had lost 0.28% and 0.33% respectively.
Hong Kong
Hong Kong’s main indexes closed in the green on Thursday thanks to a stellar performance by the energy, financial and property sectors while investors cheered Powell’s testimony as he opened the door to a potential interest rate cut later this month. At 19h05, the Hang Seng gained 0.76%.
Japan
Expectations of an interest rate cut by the Fed boosted Japan’s Nikkei on Thursday, but gains were trimmed by an admission of the mismanagement of insurance policies by heavyweight life insurance company, Japan Post Insurance. At the closing bell, the Nikkei had gained 0.51%.
Rand
The rand continued to strengthen against major global currencies on Thursday, reaching its strongest level in five months boosted by Powell’s surprisingly dovish tone during his testimony before congress. At 19h20, the rand traded at R13.95 against the dollar.
Precious metals
Gold prices endured selling pressure on Thursday after US inflation rose higher than expected in June. At 19h25, spot gold was trading in the red at $1 407.80 an ounce.
Oil
Oil prices peaked at a six-week high on Thursday following an evacuation of oil rigs in the Gulf of Mexico ahead of a storm, amid heightened tensions in the Middle East. At 19h30, a barrel of Brent crude was trading at $67.22.
The JSE closed in the red on Thursday following an 8% decline in local bond yields, while the local currency peaked at an intra-day best of R13.85/$. Shortly after the closing bell, the All Share lost 0.56%.
United States
US stocks traded higher on Thursday after the main indexes on Wall Street peaked at record highs, following US Federal Reserve (Fed) chair Jerome Powell’s dovish stance on monetary policies, affirming the case for an interest rate cut in the near future. At 18h50, the Dow was trading 0.72% in the green.
Europe
European shares maintained a four-day losing streak on Thursday following apprehensions over corporate earnings and trade countered a rally sparked by Powell’s testimony. At 18h55, the FTSE 100 Index and the DAX had lost 0.28% and 0.33% respectively.
Hong Kong
Hong Kong’s main indexes closed in the green on Thursday thanks to a stellar performance by the energy, financial and property sectors while investors cheered Powell’s testimony as he opened the door to a potential interest rate cut later this month. At 19h05, the Hang Seng gained 0.76%.
Japan
Expectations of an interest rate cut by the Fed boosted Japan’s Nikkei on Thursday, but gains were trimmed by an admission of the mismanagement of insurance policies by heavyweight life insurance company, Japan Post Insurance. At the closing bell, the Nikkei had gained 0.51%.
Rand
The rand continued to strengthen against major global currencies on Thursday, reaching its strongest level in five months boosted by Powell’s surprisingly dovish tone during his testimony before congress. At 19h20, the rand traded at R13.95 against the dollar.
Precious metals
Gold prices endured selling pressure on Thursday after US inflation rose higher than expected in June. At 19h25, spot gold was trading in the red at $1 407.80 an ounce.
Oil
Oil prices peaked at a six-week high on Thursday following an evacuation of oil rigs in the Gulf of Mexico ahead of a storm, amid heightened tensions in the Middle East. At 19h30, a barrel of Brent crude was trading at $67.22.
Our daily update
The Governor of the South African Reserve Bank (SARB) has been appointed for another term by the President of South Africa, Cyril Ramaphosa. In addition to this two new deputy governors have been appointed, one of which was the former head of economic statistics at Statistics South Africa
Read the full article here
Read the full article here
Our JSE All Share index daily performance calendar
Visit our JSE Calendar tracker page for a expanded version of the calendar below
The graphic below provides the daily returns of the JSE All Share Index (J203) on a calendar chart. Provides a great overview of the All share index over the course of the month. It will be updated daily with our daily investment update as received from PSG.
So the South African stock market is still up substantially for the year, with the only negative months so far being the month of May in which markets pulled back pretty sharply. But the markets rebounded in June with it ending up close to 5% for the month.
For the first trading week of July 2019, the market was down just over 1% for the first trading week of the 2nd half of 2019. On the bright side though is the fact that the South African Rand has been very strong recently with it breaking through the R14/$ 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 $14 again.
The second trading week of July 2019 got off to a positive start. But the positive mood was soon spoiled with the markets closing down a substantial -1.34% for the second trading day of the week. Only to be followed by a strong rally the day thereafter. The overall South African Stock Exchange is down by -1.56% for July 2019 so far
For more on daily market movements see our 2019 Calendar tracker.
But we as South African investors are losing out in Dollar terms. Largely due to continued Rand weakness not only over the short term but over the last couple of years. We continue to advise investors to take money out of South Africa and invest it offshore. Looking for ideas for investments to make? Go read this article
For the first trading week of July 2019, the market was down just over 1% for the first trading week of the 2nd half of 2019. On the bright side though is the fact that the South African Rand has been very strong recently with it breaking through the R14/$ 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 second trading day of the week. Only to be followed by a strong rally the day thereafter. The overall South African Stock Exchange is down by -1.56% 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