|
PSG daily investment update 16 May 2019
Date: 16 May 2019 Category: Stock Market |
Related Topics |
|
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.
|
|
Short summary of PSG's market commentary for 16 May 2019
South Africa
The JSE continued on a downward spiral on Wednesday afternoon as the release of disappointing economic data dragged local equities into negative territory. Shortly after the closing bell, the All Share had lost over 0.30%.
United States
Shares in the US traded higher on Wednesday after the release of a report which made claims that US President Donald Trump may delay a decision to impose auto tariffs by up to six months, easing apprehensions over slowing global growth. At 18h00, the Dow Jones had gained 0.51%.
Europe
European shares traded higher on Wednesday after news broke that Trump plans to delay tariffs on auto imports, reversing losses incurred in the opening session and easing pressure on government bond yields triggered by poor US economic data. At 18h15, the pan-European Stoxx 600 had gained 0.46%.
Hong Kong
Shares in Hong Kong rallied on Wednesday following the release of poor economic data from China while a minor softening in rhetoric from Trump somewhat lessened trade apprehensions. At 18h20, the Hang-Seng had gained 0.52%.
Japan
Japan’s Nikkei broke free from a seven-day losing streak to end higher on Wednesday as optimism that China may implement additional stimulus to aid a slowing economy lifted shares. At 18h25, the Nikkei gained 0.58%.
Rand
The rand weakened against major global currencies on Wednesday afternoon as investors became cautious and kept a close watch on new developments in the US-China trade war. At 18h30, the rand traded at R14.20 against the dollar.
Precious metals
Gold prices were steady on Wednesday following a retreat in world markets, indicating a reduction in risk appetite as investors anticipated the latest developments from the US-Sino trade war that has continued to wreak havoc on global markets. At 18h50, Spot gold was up trading at $1 295.04 an ounce
Oil
Oil prices slipped on Wednesday amid fresh consumption concerns as threats to production and exports persist. At 18h40, a barrel of Brent crude was trading at $72.13.
The JSE continued on a downward spiral on Wednesday afternoon as the release of disappointing economic data dragged local equities into negative territory. Shortly after the closing bell, the All Share had lost over 0.30%.
United States
Shares in the US traded higher on Wednesday after the release of a report which made claims that US President Donald Trump may delay a decision to impose auto tariffs by up to six months, easing apprehensions over slowing global growth. At 18h00, the Dow Jones had gained 0.51%.
Europe
European shares traded higher on Wednesday after news broke that Trump plans to delay tariffs on auto imports, reversing losses incurred in the opening session and easing pressure on government bond yields triggered by poor US economic data. At 18h15, the pan-European Stoxx 600 had gained 0.46%.
Hong Kong
Shares in Hong Kong rallied on Wednesday following the release of poor economic data from China while a minor softening in rhetoric from Trump somewhat lessened trade apprehensions. At 18h20, the Hang-Seng had gained 0.52%.
Japan
Japan’s Nikkei broke free from a seven-day losing streak to end higher on Wednesday as optimism that China may implement additional stimulus to aid a slowing economy lifted shares. At 18h25, the Nikkei gained 0.58%.
Rand
The rand weakened against major global currencies on Wednesday afternoon as investors became cautious and kept a close watch on new developments in the US-China trade war. At 18h30, the rand traded at R14.20 against the dollar.
Precious metals
Gold prices were steady on Wednesday following a retreat in world markets, indicating a reduction in risk appetite as investors anticipated the latest developments from the US-Sino trade war that has continued to wreak havoc on global markets. At 18h50, Spot gold was up trading at $1 295.04 an ounce
Oil
Oil prices slipped on Wednesday amid fresh consumption concerns as threats to production and exports persist. At 18h40, a barrel of Brent crude was trading at $72.13.
Our daily update
Yesterday we launched a page dedicated to South Africa's mining industry, in which we will provide statistics and information relating to mining in South Africa as new information becomes available. The image below shows that mining production fell 3.4% in the first quarter of 2019 when compared to the first quarter of 2018. Our page dedicated to South Africa's mining industry can be found here.
Image shows year on year growth rate in mining production per mineral type. Credit: Statistics South Africa
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 (in which it is alleged that drones laden with explosives flew into these container ships).
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
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