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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 19 November 2019
South Africa
The local markets traded up at the start of the week after China dropped its short-term funding rate by 5bps to 2.50%. The Top 40 closed up by 0.82%.
United States
Negative reports surrounding the current US-China trade negotiations led to Wall Street’s main indices falling from record highs when they opened on Monday. At 18h50, the Nasdaq traded 0.06% in the red.
Europe
European shares ended the start of the week in the red as new pessimistic reports from Beijing weighed on hopes of a possible trade deal between the US and China. The pan-European STOXX 600 Index fell 0.01%.
Hong Kong
Asian markets rose on Monday after China’s central bank cut short-term funding rates unexpectedly, indicating that policymakers are prepared to boost slowing economic growth. The Hang Seng Index climbed 1.19% for the day.
Japan
Japanese shares were boosted by Wall Street’s stellar performance on Friday as well as optimism around a merger announcement between Z Holdings and Line Corp. The Nikkei rose 0.49%.
Rand
The rand slowed on Monday as investors acted cautiously ahead of the South African Reserve Bank’s monetary policy announcement later in the week. At 18h50, the rand was trading R14.79 to the US dollar.
Precious metals
Gold prices offset losses from earlier in the day on Monday as fresh doubts around a possible US-Sino tariff deal surfaced. An ounce of gold cost $1 471.58 at 18h50.
Oil
Renewed uncertainty around the US-China trade dispute on Monday negated some of the oil price’s gains from the previous week. Brent crude traded at $62.25 a barrel at 18h50.
The local markets traded up at the start of the week after China dropped its short-term funding rate by 5bps to 2.50%. The Top 40 closed up by 0.82%.
United States
Negative reports surrounding the current US-China trade negotiations led to Wall Street’s main indices falling from record highs when they opened on Monday. At 18h50, the Nasdaq traded 0.06% in the red.
Europe
European shares ended the start of the week in the red as new pessimistic reports from Beijing weighed on hopes of a possible trade deal between the US and China. The pan-European STOXX 600 Index fell 0.01%.
Hong Kong
Asian markets rose on Monday after China’s central bank cut short-term funding rates unexpectedly, indicating that policymakers are prepared to boost slowing economic growth. The Hang Seng Index climbed 1.19% for the day.
Japan
Japanese shares were boosted by Wall Street’s stellar performance on Friday as well as optimism around a merger announcement between Z Holdings and Line Corp. The Nikkei rose 0.49%.
Rand
The rand slowed on Monday as investors acted cautiously ahead of the South African Reserve Bank’s monetary policy announcement later in the week. At 18h50, the rand was trading R14.79 to the US dollar.
Precious metals
Gold prices offset losses from earlier in the day on Monday as fresh doubts around a possible US-Sino tariff deal surfaced. An ounce of gold cost $1 471.58 at 18h50.
Oil
Renewed uncertainty around the US-China trade dispute on Monday negated some of the oil price’s gains from the previous week. Brent crude traded at $62.25 a barrel at 18h50.
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Our daily update
Tomorrow will see the release of South Africa's latest inflation rate data, and this while the South African Reserve Bank (SARB) monetary policy committee (MPC) starts is last meeting for the year today (which ends on Thursday the 21). With lower levels of inflation, forecasted levels of inflation declining and inflation expectations continuing to decline and economic growth still struggling to gain any traction we would not be surprised if the MPC decides to cut interest rates on Thursday. With government spending and tax collections (fiscal policy) struggling some of the onus would be on monetary policy to stimulate growth in the economy. And while price stability is part of their core mandate, so is balanced and stable growth. And there is currently no growth, so SARB is not fulfilling that part of their mandate.
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 the month of October 2019 saw the JSE All Share Index end in the green. And the first trading day of November 2019 saw the JSE edge up slightly last week Friday. Can the momentum continue and the "Christmas rally" carry the markets higher in the closing months of 2019? So the hard work of the first few trading days of November 2019 was basically wiped out by two negative days towards the end of last week. The JSE All Share Index is up slightly (0.19%) for the month of November 2019
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
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