|
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 18 February 2019
South Africa
The JSE endured a day of choppy trade on Friday as gains recorded in early trade were capped by concerns over a looming US economic recession and Eskom’s financial woes. At 18h30 the All Share clawed back 0.19% as a weaker rand boosted miners and rand hedges.
United States
The US stock market rose on Friday led by a rally in financial stocks as investors remained optimistic over the possibility of a trade truce between the US and China. At 18h00 The Dow Jones futures gained 1.74%.
Europe
Optimism over a potential trade deal that could be born of the bilateral trade talks between the US and China boosted European shares on Friday, after disappointing data from both countries sent global stocks on a downward spiral. At 18h00 the FTSE 100 gained 0.55%.
Hong Kong
Hong Kong stocks traded lower on Friday following the release of less-than-inspiring economic data from China. The Hang Seng ended the day 1.87% in the red.
Japan
The Nikkei plunged on Friday after the release of poor US retail sales data which weighed heavily on investor sentiment and risk appetite, dragging the broader market down in the process. At 17h50 the Nikkei made a loss of 1.13%.
Rand
The rand was set for its worst weekly performance against the dollar since October 2018 as investors priced in the risk of a possible US economic recession. At 19h00 the rand traded R14.06 against the dollar.
Precious metals
Gold prices remained steady on Friday as concerns over a global economic slowdown prompted investors to seek the safe-haven metal while a stronger greenback capped gains. At 19h15 Spot gold was trading at $1 305.65 an ounce.
Oil
Oil prices peaked above $65 a barrel on Friday as supply cuts by Opec encouraged investors. At 19h30 benchmark Brent crude was trading at $64.57 a barrel.
The JSE endured a day of choppy trade on Friday as gains recorded in early trade were capped by concerns over a looming US economic recession and Eskom’s financial woes. At 18h30 the All Share clawed back 0.19% as a weaker rand boosted miners and rand hedges.
United States
The US stock market rose on Friday led by a rally in financial stocks as investors remained optimistic over the possibility of a trade truce between the US and China. At 18h00 The Dow Jones futures gained 1.74%.
Europe
Optimism over a potential trade deal that could be born of the bilateral trade talks between the US and China boosted European shares on Friday, after disappointing data from both countries sent global stocks on a downward spiral. At 18h00 the FTSE 100 gained 0.55%.
Hong Kong
Hong Kong stocks traded lower on Friday following the release of less-than-inspiring economic data from China. The Hang Seng ended the day 1.87% in the red.
Japan
The Nikkei plunged on Friday after the release of poor US retail sales data which weighed heavily on investor sentiment and risk appetite, dragging the broader market down in the process. At 17h50 the Nikkei made a loss of 1.13%.
Rand
The rand was set for its worst weekly performance against the dollar since October 2018 as investors priced in the risk of a possible US economic recession. At 19h00 the rand traded R14.06 against the dollar.
Precious metals
Gold prices remained steady on Friday as concerns over a global economic slowdown prompted investors to seek the safe-haven metal while a stronger greenback capped gains. At 19h15 Spot gold was trading at $1 305.65 an ounce.
Oil
Oil prices peaked above $65 a barrel on Friday as supply cuts by Opec encouraged investors. At 19h30 benchmark Brent crude was trading at $64.57 a barrel.
Our daily rant..
While South Africa got a reprieve from loadshedding over the weekend, all eyes will be on the Finance minister and the budget speech due this week. Exactly how is government going to bail ESKOM out this time, and how much more of South African tax payer money will be spent trying to save the sinking ship that is ESKOM. How much more will South Africans be taxed? By how much will "sin taxes" and the fuel levy go up? Will personal income tax be increased? Or the tax bracket creep relief that is usually granted to save tax payers from salary increases pushing them into higher tax brackets be done away with to ensure government has more money in their coffers.
What is the expected salary increases for all the government workers, will the wage bill be capped and will pay increases be higher than inflation?
All of this and more in the budget speech coming up. All we can say is that consumers will be under increased financial pressure come April when all the new taxes kick in. And with that the petrol price is set to increase again. Though times about to get a lot tougher.
What is the expected salary increases for all the government workers, will the wage bill be capped and will pay increases be higher than inflation?
All of this and more in the budget speech coming up. All we can say is that consumers will be under increased financial pressure come April when all the new taxes kick in. And with that the petrol price is set to increase again. Though times about to get a lot tougher.
Our JSE All Share index daily performance calendar
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.
The first trading day of February ended in the red. In contrast to January in which every Friday ended the day in the green, so far for February 2019 every Friday has ended in the red. So far the market has increased by 0.9% during the first 15 days of February 2019. Its been a relatively directionless month for the stock market, with movements flip flopping between positive and negative. Neither the bulls nor the bears are currently in control of the markets, so we are basically just moving sideways. All eyes and attention will be on the budget speech. It might provide the catalyst for the markets to move in either direction, depending on government's spending plans.