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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 1 August 2019
South Africa
Tracking Asian markets for the most part of the day, the JSE ended lower on Wednesday after hopes of a possible trade deal between Washington and Beijing were dampened by US President Donald Trump’s attack on China. Shortly after the closing bell, the All Share was down by 0.80%.
United States
Shares on Wall Street rebounded on Wednesday following the release of a better-than-expected earnings report from Apple Inc, while investors kept a close watch on the US Federal Reserve (Fed) and its stance on monetary policy. At 17h45, the S&P 500 was trading at 0.12% in the green.
Europe
European shares rebounded on Wednesday following a solid performance by retail banking company BNP Paribas which countered the release of a poor earnings report from market heavyweight Lloyds and concerns of a no-deal Brexit. At 17h50, the DAX was 0.33% in the green.
Hong Kong
Asian stock markets fell on Wednesday after Trump warned China not to drag the trade negotiations while Beijing’s negative stance on the property market weighed on sentiment. At 17h55, the Hang Seng lost 1.18%.
Japan
Threats of a no-deal conclusion from the US-China trade talks weighed heavily on Japanese shares on Wednesday, while automotive parts suppliers and banks posted poor earnings, which dragged down overall market sentiment. At the closing bell, the Nikkei had lost 0.86%.
Rand
The rand strengthened against major global currencies on Wednesday as markets priced in a 25 basis-points rate cut, but perhaps more important for investors was to see whether the Fed would be more aggressive in easing monetary policy in the near future. At 18h00, the rand traded at R14.16 against the dollar.
Precious metals
Gold prices held steady on Wednesday as investors remained optimistic that the Fed would lower interest rates by at least 25 basis points, which would reduce the opportunity cost of holding non-yielding gold. At 18h05, spot gold was trading in the green at $1 428.23 an ounce.
Oil
A decline in US inventories prompted a fifth consecutive day of gains for oil prices on Wednesday ahead of a much-anticipated interest rate cut by the Fed, which would encourage oil demand and apply downward pressure on the dollar. At 18h10, a barrel of Brent crude was trading at $65.08.
Tracking Asian markets for the most part of the day, the JSE ended lower on Wednesday after hopes of a possible trade deal between Washington and Beijing were dampened by US President Donald Trump’s attack on China. Shortly after the closing bell, the All Share was down by 0.80%.
United States
Shares on Wall Street rebounded on Wednesday following the release of a better-than-expected earnings report from Apple Inc, while investors kept a close watch on the US Federal Reserve (Fed) and its stance on monetary policy. At 17h45, the S&P 500 was trading at 0.12% in the green.
Europe
European shares rebounded on Wednesday following a solid performance by retail banking company BNP Paribas which countered the release of a poor earnings report from market heavyweight Lloyds and concerns of a no-deal Brexit. At 17h50, the DAX was 0.33% in the green.
Hong Kong
Asian stock markets fell on Wednesday after Trump warned China not to drag the trade negotiations while Beijing’s negative stance on the property market weighed on sentiment. At 17h55, the Hang Seng lost 1.18%.
Japan
Threats of a no-deal conclusion from the US-China trade talks weighed heavily on Japanese shares on Wednesday, while automotive parts suppliers and banks posted poor earnings, which dragged down overall market sentiment. At the closing bell, the Nikkei had lost 0.86%.
Rand
The rand strengthened against major global currencies on Wednesday as markets priced in a 25 basis-points rate cut, but perhaps more important for investors was to see whether the Fed would be more aggressive in easing monetary policy in the near future. At 18h00, the rand traded at R14.16 against the dollar.
Precious metals
Gold prices held steady on Wednesday as investors remained optimistic that the Fed would lower interest rates by at least 25 basis points, which would reduce the opportunity cost of holding non-yielding gold. At 18h05, spot gold was trading in the green at $1 428.23 an ounce.
Oil
A decline in US inventories prompted a fifth consecutive day of gains for oil prices on Wednesday ahead of a much-anticipated interest rate cut by the Fed, which would encourage oil demand and apply downward pressure on the dollar. At 18h10, a barrel of Brent crude was trading at $65.08.
Our daily update
In what is compounding South Africa's social and economic problems, South Africa's unemployment rate is now at an all time high. Add to this declining taxes collected, increased government spending plans, increased state guarantees for state owned enterprises the latest unemployment numbers will add to South Africa's economic woes. The summary below shows the unemployment rate for South Africa and all its provinces for the 2nd quarter of 2019.
Read the full article here
- Eastern Cape: 35.4%
- Mpumalanga: 34.7%
- Free State: 34.4%
- North West: 33.0%
- Gauteng: 31.1%
- Northern Cape: 29.4%
- South Africa: 29.0%
- KwaZulu Natal: 26.1%
- Western Cape: 20.4%
- Limpopo: 20.3%
Read the full article here
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 South African stock market is still up substantially for the year, with the only negative months so far being the month of May in which markets pulled back pretty sharply. But the markets rebounded in June with it ending up close to 5% for the month.
The JSE All Share Index ended the month of July down by -2.36%. Only the second negative month for the JSE in 2019. So lets see what August 2019 holds for South Africa's stock market
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
The JSE All Share Index ended the month of July down by -2.36%. Only the second negative month for the JSE in 2019. So lets see what August 2019 holds for South Africa's stock market
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