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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 rant at the end.
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Short summary of PSG's market commentary for 1 February 2019
South Africa
Despite the rand’s strong performance, the JSE closed flat on Thursday due to poor results and trading updates from the retail sector and some miners. Retailers fell 5.66% in January, making it the worst performing index in the month.
United States
On Thursday most US indices rose on the back of the US Federal Reserve (Fed) deciding to take a more patient approach to future monetary policy changes, and due to stellar results released by tech companies. At market close, the Nasdaq gained 2.21% while the Dow fell 0.05%.
Europe
After choppy trading on Thursday, European markets closed flat, mostly because of weak economic data released, pointing towards possible slowing economic growth, and Italy entering a technical recession. The STOXX 600 closed up 0.16%.
Hong Kong
Asian markets enjoyed a boost on Thursday after the Fed’s monetary stance decision. These gains aided the Hang Seng to end January up 8.39% and the Chinese Enterprises Index 9% higher – the best monthly gains since January 2018. At the close of trade, the Hang Seng was 0.40% up and the Shanghai 0.35%.
Japan
The Nikkei made up some ground on Thursday in light of the Fed’s announcement to be more patient regarding future interest rate hikes, which lifted investor sentiment. At market close, the Nikkei was 1.06% higher.
Rand
The Fed’s dovish tone around interest rates boosted emerging market currencies, especially the rand, which reached an almost six-month high on Thursday. At 20h00, a rand traded at R13.31 a dollar.
Precious metals
On Thursday gold prices continued to climb due to the Fed’s monetary policy announcements on Wednesday night, which caused the dollar to slide. At 20h00, spot gold traded at $1 321.05 an ounce.
Oil
Oil prices decreased on Thursday despite production cuts and the US monetary policy updates, but because of new concerns around the US-China trade disputes. On Thursday, US President Donald Trump announced that either a big trade deal would be struck or it would be postponed altogether. At 20h00, a barrel of Brent crude cost $61.89.
Despite the rand’s strong performance, the JSE closed flat on Thursday due to poor results and trading updates from the retail sector and some miners. Retailers fell 5.66% in January, making it the worst performing index in the month.
United States
On Thursday most US indices rose on the back of the US Federal Reserve (Fed) deciding to take a more patient approach to future monetary policy changes, and due to stellar results released by tech companies. At market close, the Nasdaq gained 2.21% while the Dow fell 0.05%.
Europe
After choppy trading on Thursday, European markets closed flat, mostly because of weak economic data released, pointing towards possible slowing economic growth, and Italy entering a technical recession. The STOXX 600 closed up 0.16%.
Hong Kong
Asian markets enjoyed a boost on Thursday after the Fed’s monetary stance decision. These gains aided the Hang Seng to end January up 8.39% and the Chinese Enterprises Index 9% higher – the best monthly gains since January 2018. At the close of trade, the Hang Seng was 0.40% up and the Shanghai 0.35%.
Japan
The Nikkei made up some ground on Thursday in light of the Fed’s announcement to be more patient regarding future interest rate hikes, which lifted investor sentiment. At market close, the Nikkei was 1.06% higher.
Rand
The Fed’s dovish tone around interest rates boosted emerging market currencies, especially the rand, which reached an almost six-month high on Thursday. At 20h00, a rand traded at R13.31 a dollar.
Precious metals
On Thursday gold prices continued to climb due to the Fed’s monetary policy announcements on Wednesday night, which caused the dollar to slide. At 20h00, spot gold traded at $1 321.05 an ounce.
Oil
Oil prices decreased on Thursday despite production cuts and the US monetary policy updates, but because of new concerns around the US-China trade disputes. On Thursday, US President Donald Trump announced that either a big trade deal would be struck or it would be postponed altogether. At 20h00, a barrel of Brent crude cost $61.89.
Our daily rant..
So based on our JSE all share index daily performance calendar South Africa's JSE all share ended the month 2.69% higher. And based on the history of Fridays so far this year on the JSE, odds are on for February 2019 to get off to a positive start, since every trading Friday this year has been positive on the JSE so far in 2019.
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.
For the full month of January 2019, the JSE All share index is up by 2.69%. Wednesday the 2nd saw its worse day of the month, while Wednesday the 9th saw the JSE All share record its best performing day of the month so far. Interestingly every Friday so far in January has seen the JSE end of a positive note.