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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 13 December 2018
South Africa
The JSE extended gains from the previous session as progress in the US-China trade talks lifted the local bourse on Wednesday. At the close of business, both the All Share and the Top 40 traded in the green.
United States
US equities enjoyed gains of over 1% on Wednesday supported by tech stocks, as optimism over China’s plan to increase access for foreign companies compelled Trump’s upbeat remarks on trade relations between the two economies. The Dow gained over 366 points and the S&P 500 ended 1.63% in the green.
Europe
European stocks rose in value on Wednesday on optimism over easing US-China trade tensions. Moreover, British markets surged on mounting expectations for Theresa May to survive a leadership challenge, which would significantly reduce the chance of a no-deal Brexit. At close of business the pound rose 0.50%.
Hong Kong
Hong Kong stocks climbed as market expectations predicted a decelerating pace of interest rate hikes in the US and policy stimulus in China. The Hang Seng closed 1.58% in the green.
Japan
Japan’s Nikkei hit its highest daily gain in over a month on Wednesday as risk appetite amongst investors was invigorated, following encouraging developments in US-China trade talks. The Nikkei share average soared 2.22% ending the day at 21 617.50 points.
Rand
The local currency stabilised against major global currencies on Wednesday afternoon, on the back of a weakened pound as markets were focused on the vote of no confidence in UK Prime Minster Theresa May. At 19h00 the rand traded R14.16 against the dollar.
Precious metals
Gold prices went up on Wednesday as markets expected a halt in the US cycle of interest rates hikes, offsetting gains in the dollar and triggering a rally in stock markets amid easing US-China trade tensions. At the close of business, spot gold was up 0.20%.
Oil
The price of oil went up to nearly $61 a barrel on Wednesday, lifted by a drop in US crude inventories, a cut in Libyan exports and an Opec resolution to restrict output. At 19h00 benchmark Brent crude was trading at $61.14 a barrel.
The JSE extended gains from the previous session as progress in the US-China trade talks lifted the local bourse on Wednesday. At the close of business, both the All Share and the Top 40 traded in the green.
United States
US equities enjoyed gains of over 1% on Wednesday supported by tech stocks, as optimism over China’s plan to increase access for foreign companies compelled Trump’s upbeat remarks on trade relations between the two economies. The Dow gained over 366 points and the S&P 500 ended 1.63% in the green.
Europe
European stocks rose in value on Wednesday on optimism over easing US-China trade tensions. Moreover, British markets surged on mounting expectations for Theresa May to survive a leadership challenge, which would significantly reduce the chance of a no-deal Brexit. At close of business the pound rose 0.50%.
Hong Kong
Hong Kong stocks climbed as market expectations predicted a decelerating pace of interest rate hikes in the US and policy stimulus in China. The Hang Seng closed 1.58% in the green.
Japan
Japan’s Nikkei hit its highest daily gain in over a month on Wednesday as risk appetite amongst investors was invigorated, following encouraging developments in US-China trade talks. The Nikkei share average soared 2.22% ending the day at 21 617.50 points.
Rand
The local currency stabilised against major global currencies on Wednesday afternoon, on the back of a weakened pound as markets were focused on the vote of no confidence in UK Prime Minster Theresa May. At 19h00 the rand traded R14.16 against the dollar.
Precious metals
Gold prices went up on Wednesday as markets expected a halt in the US cycle of interest rates hikes, offsetting gains in the dollar and triggering a rally in stock markets amid easing US-China trade tensions. At the close of business, spot gold was up 0.20%.
Oil
The price of oil went up to nearly $61 a barrel on Wednesday, lifted by a drop in US crude inventories, a cut in Libyan exports and an Opec resolution to restrict output. At 19h00 benchmark Brent crude was trading at $61.14 a barrel.
Our daily rant..
South Africa's inflation rate came in at 5.2% for the month of October. So while some would say this provides sufficient proof as to why the South African Reserve Bank (SARB) raised interest rates in late November. Well the massive fuel price cut announced in December still needs to show up in the numbers. And that is sure to drag down the numbers substantially. We believe inflation is nearing its short term peak levels and predict a slow down in the inflation numbers going in to 2019.