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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 20 June 2019
South Africa
The JSE was subdued on Wednesday following a sluggish performance by Naspers and as trading remained thin ahead of the US Federal Reserve’s (Fed) statement on the future of interest rate cuts, however, losses were capped by signs of progress in the infamous US-Sino trade talks and a strong showing by banks and financials. Shortly after the closing bell, the All Share lost 0.11%.
United States
US stock markets were generally flat on Wednesday as market participants opted to remain on the sidelines ahead of the Fed’s decision on future interest rate cuts. At 17h10, the Dow was trading 0.10% in the green.
Europe
European markets were subdued on Wednesday following a strong policy briefing by the European Central Bank (ECB) that signalled lower interest rates. At 17h15, the pan-European Stoxx 600 lost 0.05%.
Hong Kong
Easing US-Sino trade tensions pushed Hong Kong stocks to reach their highest level since November 2018 on Wednesday while investors hoped for widespread policy easing by key central banks. At 17h30, the Hang Seng gained 2.47%.
Japan
News of renewed US-China trade talks boosted Japan’s Nikkei to end near six-week highs on Wednesday, while optimism that the US Fed will slash rates this year lifted sentiment. At the closing bell, the Nikkei gained 1.73%.
Rand
Not much movement was seen in the local currency on Wednesday from the previous session with the rand maintaining its upper hand against the dollar as markets anticipated the Fed’s interest rate decision. At 17h30, the rand traded at R14.53 against the dollar.
Precious metals
Gold prices slipped on Wednesday as trading remained subdued ahead of the Fed’s statement on the future of interest rate cuts while easing trade tensions boosted risk appetite. At 17h40, spot gold was up trading at $1 345.37 an ounce.
Oil
Oil prices were stable on Wednesday as a decline in US crude inventories contradicted a boost offset by hopes for a US-China trade agreement in the foreseeable future. At 17h45, a barrel of Brent crude was trading at $62.39.
The JSE was subdued on Wednesday following a sluggish performance by Naspers and as trading remained thin ahead of the US Federal Reserve’s (Fed) statement on the future of interest rate cuts, however, losses were capped by signs of progress in the infamous US-Sino trade talks and a strong showing by banks and financials. Shortly after the closing bell, the All Share lost 0.11%.
United States
US stock markets were generally flat on Wednesday as market participants opted to remain on the sidelines ahead of the Fed’s decision on future interest rate cuts. At 17h10, the Dow was trading 0.10% in the green.
Europe
European markets were subdued on Wednesday following a strong policy briefing by the European Central Bank (ECB) that signalled lower interest rates. At 17h15, the pan-European Stoxx 600 lost 0.05%.
Hong Kong
Easing US-Sino trade tensions pushed Hong Kong stocks to reach their highest level since November 2018 on Wednesday while investors hoped for widespread policy easing by key central banks. At 17h30, the Hang Seng gained 2.47%.
Japan
News of renewed US-China trade talks boosted Japan’s Nikkei to end near six-week highs on Wednesday, while optimism that the US Fed will slash rates this year lifted sentiment. At the closing bell, the Nikkei gained 1.73%.
Rand
Not much movement was seen in the local currency on Wednesday from the previous session with the rand maintaining its upper hand against the dollar as markets anticipated the Fed’s interest rate decision. At 17h30, the rand traded at R14.53 against the dollar.
Precious metals
Gold prices slipped on Wednesday as trading remained subdued ahead of the Fed’s statement on the future of interest rate cuts while easing trade tensions boosted risk appetite. At 17h40, spot gold was up trading at $1 345.37 an ounce.
Oil
Oil prices were stable on Wednesday as a decline in US crude inventories contradicted a boost offset by hopes for a US-China trade agreement in the foreseeable future. At 17h45, a barrel of Brent crude was trading at $62.39.
Our daily update
South Africa's latest inflation rate for May 2019 came in right in the middle of the South African Reserve Bank (SARB) 3% to 6% inflation target, at 4.5%. With inflation well within target range and economic growth falling off a cliff, we believe monetary policy will become more expansionary in South Africa very soon, in order to assist growth.
Read the full article here
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 after four very positive months on the markets the month of May bucked the trend and saw half the gains made during the first four months of the year on the JSE wiped out in one month. While the South African Rand has really been struggling the Rand hedges on the JSE has been pushing the local stock market higher. The JSE All share index as a whole is still up 5.3% so far in June 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