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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 November 2019
South Africa
The local market extended gains into Tuesday as it was boosted by banks and resources which rose 1.92% and 1.50% respectively. The Top 40 closed up 1.73%.
United States
Wall Street opened on a high on Tuesday lifted by investor optimism that the US and China might be close to putting an end to their trade spat, despite retail stocks taking a knock. At 19h15, the Nasdaq traded 0.33% in the green.
Europe
Despite automobiles’ poor performance weighing on European markets on Tuesday, defensive buying on the back of trade uncertainties led to the indices closing flat. The pan-European STOXX 600 Index dropped 0.12%.
Hong Kong
Asian indices enjoyed another day of gains, the Hang Seng reaching a one-week high, on the back of optimism as China’s central bank cut rates. The Hang Seng Index climbed 1.55% for the day.
Japan
Japanese shares fell on Tuesday as the stronger yen put pressure on exporters and investors awaited news regarding the trade war. The Nikkei fell 0.53%.
Rand
The local currency strengthened somewhat on Tuesday as investors awaited a potential US-Sino trade deal breakthrough and the release of the upcoming FOMC meeting minutes. At 19h15, the rand was trading R14.76 to the US dollar.
Precious metals
Gold prices were softer on Tuesday after Washington gave US companies an extension to conduct business with Huawei; “a move that markets took as a sign of progressing US-China trade relations.” An ounce of gold cost $1 472.64 at 19h15.
Oil
Oil prices took a fall on Tuesday as investors grew wary over global crude oversupply and the lack of clarity regarding the tariff negotiations. Brent crude traded at $61.56 a barrel at 19h15.
The local market extended gains into Tuesday as it was boosted by banks and resources which rose 1.92% and 1.50% respectively. The Top 40 closed up 1.73%.
United States
Wall Street opened on a high on Tuesday lifted by investor optimism that the US and China might be close to putting an end to their trade spat, despite retail stocks taking a knock. At 19h15, the Nasdaq traded 0.33% in the green.
Europe
Despite automobiles’ poor performance weighing on European markets on Tuesday, defensive buying on the back of trade uncertainties led to the indices closing flat. The pan-European STOXX 600 Index dropped 0.12%.
Hong Kong
Asian indices enjoyed another day of gains, the Hang Seng reaching a one-week high, on the back of optimism as China’s central bank cut rates. The Hang Seng Index climbed 1.55% for the day.
Japan
Japanese shares fell on Tuesday as the stronger yen put pressure on exporters and investors awaited news regarding the trade war. The Nikkei fell 0.53%.
Rand
The local currency strengthened somewhat on Tuesday as investors awaited a potential US-Sino trade deal breakthrough and the release of the upcoming FOMC meeting minutes. At 19h15, the rand was trading R14.76 to the US dollar.
Precious metals
Gold prices were softer on Tuesday after Washington gave US companies an extension to conduct business with Huawei; “a move that markets took as a sign of progressing US-China trade relations.” An ounce of gold cost $1 472.64 at 19h15.
Oil
Oil prices took a fall on Tuesday as investors grew wary over global crude oversupply and the lack of clarity regarding the tariff negotiations. Brent crude traded at $61.56 a barrel at 19h15.
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Our daily update
The summary below shows the inflation rates per province in South Africa for October 2019. And surprise surprise the inflation rate of Limpopo is the highest of any province. The first time in 30 months its not been the Western Cape
Other noteworthy inflation numbers for South Africa in October 2019
Based on the release of the latest inflation numbers in South Africa we believe that the South African Reserve Bank (SARB) monetary policy committee (MPC) that is meeting right now to discuss the direction of South Africa's monetary policy and will make an interest rat announcement tomorrow 21 November 2019, will find it VERY hard to justify not cutting interest rates considering the subdued inflation numbers and the significant lack of growth in the South African economy.
Read the full article here
- Limpopo: 4.5%
- Western Cape: 4.3%
- Northern Cape: 3.8%
- South Africa: 3.7%
- Free State: 3.7%
- Gauteng: 3.6%
- KwaZulu-Natal: 3.6%
- Mpumalanga: 3.3%
- North West: 3.2%
- Eastern Cape: 3.1%
Other noteworthy inflation numbers for South Africa in October 2019
- Pensioners inflation: 3.7%
- Inflation for services: 4.2%
- Inflation for all goods: 3.1%
- Inflation for durable goods: 2.2%
- Inflation for semi-durable goods: 2.0%
- Inflation for non durable goods: 3.5%
Based on the release of the latest inflation numbers in South Africa we believe that the South African Reserve Bank (SARB) monetary policy committee (MPC) that is meeting right now to discuss the direction of South Africa's monetary policy and will make an interest rat announcement tomorrow 21 November 2019, will find it VERY hard to justify not cutting interest rates considering the subdued inflation numbers and the significant lack of growth in the South African economy.
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 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 1.79% 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