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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 18 September 2019
South Africa
The local market lost ground on Tuesday because of the oil price dropping after reports that Saudi is close to restoring 70% of its crude productions, and investors acted with caution ahead of the US Federal Reserve Bank’s (Fed) monetary policy decision. At the closing bell, the All Share was down by 1.66%.
United States
Wall Street opened lower on Tuesday as investors avoided making predictions of what the Fed will announce after their two-day policy meeting; however, a cut in interest rates is widely expected. Shortly after the JSE closed, the Nasdaq was 0.02% higher.
Europe
Tuesday was a flat trading day for European markets due to banks and energy shares losing steam ahead of the Fed’s upcoming interest rate announcement. At the end of trade, the STOXX 600 stood 0.05% in the red.
Hong Kong
Asian indices ended Tuesday in the red after Beijing announced that it would not be changing China’s monetary policies, despite readings indicating additional pressure to lower rates. The Hang Seng closed down 1.47%.
Japan
Japanese markets rose slightly on Tuesday, boosted by oil and gas companies as well as the mining, oil and coal sectors on the back of Saturday’s Saudi Arabian attacks. The Nikkei stood 0.06% in the green.
Rand
On Tuesday, the local currency fell to a one-week low as it extended losses due to the soaring tensions in the Middle East, related to the crude facility attacks in Saudi Arabia. At 18h50, the rand traded at R14.75 per dollar.
Precious metals
Bullion prices steadied towards the end of Tuesday as investors waited for the Fed’s monetary policy decision to be released this week. At 18h50, an ounce of spot gold traded at $1 505.61.
Oil
The oil price lost some of Monday’s gains on Tuesday after reports surfaced that Saudi crude productions could be restored within weeks – much faster than anticipated. At 18h50, a barrel of Brent crude traded at $66.04
The local market lost ground on Tuesday because of the oil price dropping after reports that Saudi is close to restoring 70% of its crude productions, and investors acted with caution ahead of the US Federal Reserve Bank’s (Fed) monetary policy decision. At the closing bell, the All Share was down by 1.66%.
United States
Wall Street opened lower on Tuesday as investors avoided making predictions of what the Fed will announce after their two-day policy meeting; however, a cut in interest rates is widely expected. Shortly after the JSE closed, the Nasdaq was 0.02% higher.
Europe
Tuesday was a flat trading day for European markets due to banks and energy shares losing steam ahead of the Fed’s upcoming interest rate announcement. At the end of trade, the STOXX 600 stood 0.05% in the red.
Hong Kong
Asian indices ended Tuesday in the red after Beijing announced that it would not be changing China’s monetary policies, despite readings indicating additional pressure to lower rates. The Hang Seng closed down 1.47%.
Japan
Japanese markets rose slightly on Tuesday, boosted by oil and gas companies as well as the mining, oil and coal sectors on the back of Saturday’s Saudi Arabian attacks. The Nikkei stood 0.06% in the green.
Rand
On Tuesday, the local currency fell to a one-week low as it extended losses due to the soaring tensions in the Middle East, related to the crude facility attacks in Saudi Arabia. At 18h50, the rand traded at R14.75 per dollar.
Precious metals
Bullion prices steadied towards the end of Tuesday as investors waited for the Fed’s monetary policy decision to be released this week. At 18h50, an ounce of spot gold traded at $1 505.61.
Oil
The oil price lost some of Monday’s gains on Tuesday after reports surfaced that Saudi crude productions could be restored within weeks – much faster than anticipated. At 18h50, a barrel of Brent crude traded at $66.04
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Our daily update
Today is the start of a two day meeting for the South African Reserve Bank (SARB) monetary policy committee in which they will decide on the local level of interest rates in South Africa. While there was a very modest interest rate cut of 25bp (which should have been a far bigger interest rate cut) we do not expect the MPC to cut interest rates when the decision is announced tomorrow.
Later this morning South Africa's latest inflation rate will be published.
Later this morning South Africa's latest inflation rate will be published.
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.
While the month of August was negative by -1.73% lets see what the month of September holds for the South African stock market.
So just more than half way through the month of September 2019 and so far the JSE All Share Index is up by 2.66% for this period. A very strong first half of September 2019. Investors will be hoping this trend can continue, but drone attacks on Saudi Arabian crude oil facilities sent the crude oil price soaring, but it came down as fast as it shot up after the Saudi's said that crude production will be back to full capacity relatively soon.
There continues to be concerns about a global economic slow down largely driven by the trade ware between the US and China. Continued tariffs by the US on Chinese goods and the retaliation by China by raising tariffs on US goods keeps hurting markets and global economic growth, as the world's two biggest economies continue to stand off in this trade war.
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
So just more than half way through the month of September 2019 and so far the JSE All Share Index is up by 2.66% for this period. A very strong first half of September 2019. Investors will be hoping this trend can continue, but drone attacks on Saudi Arabian crude oil facilities sent the crude oil price soaring, but it came down as fast as it shot up after the Saudi's said that crude production will be back to full capacity relatively soon.
There continues to be concerns about a global economic slow down largely driven by the trade ware between the US and China. Continued tariffs by the US on Chinese goods and the retaliation by China by raising tariffs on US goods keeps hurting markets and global economic growth, as the world's two biggest economies continue to stand off in this trade war.
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