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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 21 June 2019
South Africa
The JSE benefited from the prospect of US interest rate cuts on Thursday, ahead of President Cyril Ramaphosa’s State of the Nation Address. Shortly after the closing bell, the All Share gained 0.68%.
United States
US markets surged on Thursday with the S&P 500 Index faring best after the US Federal Reserve (Fed) announced the possibility of interest rates cuts in the foreseeable future in an attempt to counter budding risks to global growth. At 17h30, the Dow was trading 0.67% in the green.
Europe
After the Fed announced potential interest rate cuts as a monetary stimulus measure to counter the risks of slowing global growth, European markets rose to a six-week high on Thursday, amid increased risk appetite. At 17h15, the pan-European Stoxx 600 lost 0.05%.
Hong Kong
Shares in Hong Kong neared a six-week high on Thursday as renewed trade talks between the US and China lifted market sentiment. At 17h45, the Hang Seng gained 1.25%.
Japan
Japan’s Nikkei peaked at a six-week high on Thursday boosted by news of a potential interest rate cut by the Fed as early as July, amid a strengthened yen environment. At the closing bell, the Nikkei gained 0.60%.
Rand
The rand strengthened against the dollar on Thursday after the Fed opened the door to potential interest rate cuts before the end of 2019. At 17h45, the rand traded at R14.30 against the dollar.
Precious metals
Gold prices hit their highest level in over five years on Thursday after the Fed announced possible interest rate cuts in the near future, weighing heavily on US treasury yields and the greenback. At 17h50, spot gold was up trading at $1 382.93 an ounce.
Oil
Oil prices surged on Thursday, climbing above the psychologically important $63 a barrel after Iran admitted to shooting down a US military drone, which was suspected to be on a “spy mission”, sparking concerns of a US-Iran war. At 17h45, a barrel of Brent crude was trading at $64.99.
The JSE benefited from the prospect of US interest rate cuts on Thursday, ahead of President Cyril Ramaphosa’s State of the Nation Address. Shortly after the closing bell, the All Share gained 0.68%.
United States
US markets surged on Thursday with the S&P 500 Index faring best after the US Federal Reserve (Fed) announced the possibility of interest rates cuts in the foreseeable future in an attempt to counter budding risks to global growth. At 17h30, the Dow was trading 0.67% in the green.
Europe
After the Fed announced potential interest rate cuts as a monetary stimulus measure to counter the risks of slowing global growth, European markets rose to a six-week high on Thursday, amid increased risk appetite. At 17h15, the pan-European Stoxx 600 lost 0.05%.
Hong Kong
Shares in Hong Kong neared a six-week high on Thursday as renewed trade talks between the US and China lifted market sentiment. At 17h45, the Hang Seng gained 1.25%.
Japan
Japan’s Nikkei peaked at a six-week high on Thursday boosted by news of a potential interest rate cut by the Fed as early as July, amid a strengthened yen environment. At the closing bell, the Nikkei gained 0.60%.
Rand
The rand strengthened against the dollar on Thursday after the Fed opened the door to potential interest rate cuts before the end of 2019. At 17h45, the rand traded at R14.30 against the dollar.
Precious metals
Gold prices hit their highest level in over five years on Thursday after the Fed announced possible interest rate cuts in the near future, weighing heavily on US treasury yields and the greenback. At 17h50, spot gold was up trading at $1 382.93 an ounce.
Oil
Oil prices surged on Thursday, climbing above the psychologically important $63 a barrel after Iran admitted to shooting down a US military drone, which was suspected to be on a “spy mission”, sparking concerns of a US-Iran war. At 17h45, a barrel of Brent crude was trading at $64.99.
Our daily update
President Cyril Ramaphosa delivered the State of the Nation (SONA) address last night, and to be honest it was more of the same. We hear all this talk about stimulating economic growth, ensuring ESKOM keeps the lights on, crime will be reduced, fruitless and wasteful expenditure will be dealt with and and and. But the thing is talk is cheap. We need to see actions by government that it is serious in rooting out corruption, fighting crime and growing the South African economy. Until such time the country and its economy will stumble along as it has been for years.
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 up 5.87% so far in June 2019. Reversing the severe losses on the markets in May 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