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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 21 December 2018
South Africa
The JSE closed slightly down on Thursday, despite the rand’s strong performance, due to gold and platinum miners faring poorly. At the end of business, the All Share was 0.43% lower.
United States
US markets faced a difficult Thursday after the Federal Reserve (Fed) Chair, Jerome Powell, announced that the planned monetary policy for 2019 included fewer interest rate hikes. By 19h50, major US markets had all dropped by more than 1%.
Europe
On Thursday, European markets reached levels last seen in 2016; this after Powell disappointed investors with his view of fewer rate hikes for 2019. The STOXX 600 closed 1.60% down.
Hong Kong
Hong Kong shares tumbled on Thursday as their central bank cautioned against downside risks to the economy. The Hang Seng ended the day 0.94% down.
Japan
Thursday was a stressfull day for Japanese shares as the Fed’s interest rate plans led to global sell-off. The Nikkei closed 2.84% down.
Rand
After initial losses on Wednesday night following the Fed’s interest rate announcement, the rand strengthened on Thursday as the dollar lost ground. At 18h50, the rand traded R14.36 to the dollar.
Precious metals
Although markets suffered on Thursday, gold reaped the benefits as investors turned to bullion for safety. At 19h35, the price of an ounce of gold had risen to $1 261.71.
Oil
Thursday had no mercy for oil prices as it fell to its lowest point in over a year because of the US interest rate increase and concerns about oversupply leading to market knocks. At 19h30, Brent crude cost $55.53 per barrel.
The JSE closed slightly down on Thursday, despite the rand’s strong performance, due to gold and platinum miners faring poorly. At the end of business, the All Share was 0.43% lower.
United States
US markets faced a difficult Thursday after the Federal Reserve (Fed) Chair, Jerome Powell, announced that the planned monetary policy for 2019 included fewer interest rate hikes. By 19h50, major US markets had all dropped by more than 1%.
Europe
On Thursday, European markets reached levels last seen in 2016; this after Powell disappointed investors with his view of fewer rate hikes for 2019. The STOXX 600 closed 1.60% down.
Hong Kong
Hong Kong shares tumbled on Thursday as their central bank cautioned against downside risks to the economy. The Hang Seng ended the day 0.94% down.
Japan
Thursday was a stressfull day for Japanese shares as the Fed’s interest rate plans led to global sell-off. The Nikkei closed 2.84% down.
Rand
After initial losses on Wednesday night following the Fed’s interest rate announcement, the rand strengthened on Thursday as the dollar lost ground. At 18h50, the rand traded R14.36 to the dollar.
Precious metals
Although markets suffered on Thursday, gold reaped the benefits as investors turned to bullion for safety. At 19h35, the price of an ounce of gold had risen to $1 261.71.
Oil
Thursday had no mercy for oil prices as it fell to its lowest point in over a year because of the US interest rate increase and concerns about oversupply leading to market knocks. At 19h30, Brent crude cost $55.53 per barrel.
Our daily rant..
So its seems that there might be some good news for consumers come January 2019, also known as Januworry when consumers start stressing about how to repay all their debts and bills that stacked up during the festive season. Based on the current Rand dollar exchange rate and the prevailing crude oil prices the over recovery on 95 Octane fuel is sitting at R1.01 a a litre. So if all goes well we as South African's should see another massive fuel price cut early in the new year. Happy new year South Africa ;)