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PSG daily investment update 15 May 2019
Date: 15 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 15 May 2019
South Africa
The JSE slid further on Tuesday after the release of poor unemployment figures, with the number of unemployed persons in the country climbing to 27.60% in the first quarter of 2019. Shortly after the closing bell, the All Share had lost over 0.25%.
United States
US stock index futures recorded gains on Tuesday following positive commentary from US President Donald Trump, which somewhat eased concerns over the implications of an escalating trade war on the global economy. At 19h00, the Dow Jones was up 1.36%.
Europe
European shares traded higher on Tuesday rebounding from a two-month low suffered in the previous session after optimistic commentary from two of the world’s biggest economies eased investor apprehensions over the infamous trade war. At 19h10, the pan-European Stoxx 600 gained 1.01%.
Hong Kong
Mainland Chinese shares stumbled and the yuan fell to its lowest level of the year on Tuesday as markets digested China’s tariff retaliation on US goods. At 19h15, the Hang-Seng had lost over 1.40%.
Japan
Japan’s Nikkei plunged further to a three-month low on Tuesday after Beijing announced retaliatory tariffs on Washington, dragging cyclical sectors through the mud. At 19h25, the Nikkei lost 0.59%.
Rand
Despite the release of poor unemployment figures for the first quarter, the rand firmed against major global currencies on Tuesday against the backdrop of an escalating US-Sino trade war that has evidently benefited emerging markets. At 19h30, the rand traded at R14.22 against the dollar.
Precious metals
Gold prices slipped on Tuesday as the infamous trade war that continues to shake markets weighed on the yuan, reducing demand for the precious metal. At 19h35, spot gold was up trading at $1 295.04 an ounce.
Oil
Oil prices went up on Tuesday after explosive-laden drones attacked pumping stations in Saudi Arabia, the world’s largest oil exporter. At 19h40, a barrel of Brent crude was trading at $71.75.
The JSE slid further on Tuesday after the release of poor unemployment figures, with the number of unemployed persons in the country climbing to 27.60% in the first quarter of 2019. Shortly after the closing bell, the All Share had lost over 0.25%.
United States
US stock index futures recorded gains on Tuesday following positive commentary from US President Donald Trump, which somewhat eased concerns over the implications of an escalating trade war on the global economy. At 19h00, the Dow Jones was up 1.36%.
Europe
European shares traded higher on Tuesday rebounding from a two-month low suffered in the previous session after optimistic commentary from two of the world’s biggest economies eased investor apprehensions over the infamous trade war. At 19h10, the pan-European Stoxx 600 gained 1.01%.
Hong Kong
Mainland Chinese shares stumbled and the yuan fell to its lowest level of the year on Tuesday as markets digested China’s tariff retaliation on US goods. At 19h15, the Hang-Seng had lost over 1.40%.
Japan
Japan’s Nikkei plunged further to a three-month low on Tuesday after Beijing announced retaliatory tariffs on Washington, dragging cyclical sectors through the mud. At 19h25, the Nikkei lost 0.59%.
Rand
Despite the release of poor unemployment figures for the first quarter, the rand firmed against major global currencies on Tuesday against the backdrop of an escalating US-Sino trade war that has evidently benefited emerging markets. At 19h30, the rand traded at R14.22 against the dollar.
Precious metals
Gold prices slipped on Tuesday as the infamous trade war that continues to shake markets weighed on the yuan, reducing demand for the precious metal. At 19h35, spot gold was up trading at $1 295.04 an ounce.
Oil
Oil prices went up on Tuesday after explosive-laden drones attacked pumping stations in Saudi Arabia, the world’s largest oil exporter. At 19h40, a barrel of Brent crude was trading at $71.75.
Our daily update
In the latest Quarterly Labour Force Survey (QLFS) published by Statistics South Africa for the first quarter of 2019 it is reported that the official unemployment rate as at Q1:2019 was sitting at 27.6%, a deterioration from the 27.1% reported in the 4th quarter of 2018. The image to the left below as obtained from Stats SA shows the unemployment rate of South Africa over time.
Even more concerning for South Africans is the amount of people classified as NEET. NEET is an acronym for not in employment education or training and covers youths between the ages of 15-24. As we discussed at length in our Education Statistics Page, this is one of the single biggest problems facing South Africa. The image to the right below shows the percentage male and female youths (between the ages of 15-24) that are seen as part of NEET.
Read the full article here.
Even more concerning for South Africans is the amount of people classified as NEET. NEET is an acronym for not in employment education or training and covers youths between the ages of 15-24. As we discussed at length in our Education Statistics Page, this is one of the single biggest problems facing South Africa. The image to the right below shows the percentage male and female youths (between the ages of 15-24) that are seen as part of NEET.
Read the full article here.
South Africa's unemployment rate over time
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Number and percentage of youths in South Africa not in employment, education or training
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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. China then announced a set of retaliatory tariffs on US goods. So it looks like the trade war is back into full swing. And added to that it seems like tensions between Iran and the US are escalating too, after alleged sabotage of oil container ships by Iran. This should force up oil prices which is one thing world markets don't need as it will fuel inflation and slow global economic growth. 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
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