|
PSG daily investment update 25 October 2018
Date: 25 October 2018 Category: Stock Market |
Related Topics |
|
We have to admit running a content website is hard work, especially for a small team looking to build a wider reader base and to develop interesting and informative content is pretty tiring stuff. So today we have decided to give readers a taste of PSG's daily investment update that it emails to it's clients.
|
|
Short summary of PSG's market commentary provided daily
South Africa
The JSE and rand weakened on Finance Minister Tito Mboweni’s first medium-term budget policy statement (MTBPS), as analysts said ratings agencies might not look kindly on the prospects of lower GDP growth and a higher budget deficit. The All Share ended the day 0.57% lower.
United States
US stocks dropped on Wednesday as weak results from AT&T and a sour outlook from chip makers ahead of key earnings added to growing worries about corporate profit growth. At 20h30 the S&P 500 was down 1.44%.
Europe
European shares failed to rebound on Wednesday as weak results from chipmaker STMicro and Deutsche Bank, kept the mood bearish despite strong results from Gucci owner Kering that boosted the luxury sector. The pan-European STOXX 600 fell 0.20%.
Hong Kong
Hong Kong shares reversed early gains to end lower on Wednesday as energy firms dropped on lower oil prices and as concerns lingered over economic risks posed by $620 billion worth of shares pledged for loans in mainland markets. At the close of trade, the Hang Seng index was down 0.40%.
Japan
Japan’s Nikkei recouped some of the previous day’s hefty losses on Wednesday, but gains were limited as investor sentiment was still fragile after the recent heavy selling in global shares. The Nikkei share average ended 0.40% higher.
Rand
The rand came under even more pressure in a stronger dollar environment with the euro weakening to $1.13 from $1.14 after the European Commission rejected Italy’s budget. When Mboweni started his speech the rand was at R14.27 to the dollar. About 10 minutes later, it hit R14.39, before weakening further to R14.44, 1.3% lower than when the minister started speaking.
Precious metals
Gold steadied off the previous day’s three-month peak on Wednesday as the dollar firmed, but prices held at elevated levels after this week’s drop in stock markets pointed to a weaker appetite for risk. Spot gold was little changed at $1 231.00 at 20h30.
Oil
Oil fell towards $75 a barrel, its lowest since late August, on Wednesday, pressured by concern that demand is weakening and supply ample even as US sanctions loom on oil exporter Iran. It recovered at 20h30 trading at $76.51.
The JSE and rand weakened on Finance Minister Tito Mboweni’s first medium-term budget policy statement (MTBPS), as analysts said ratings agencies might not look kindly on the prospects of lower GDP growth and a higher budget deficit. The All Share ended the day 0.57% lower.
United States
US stocks dropped on Wednesday as weak results from AT&T and a sour outlook from chip makers ahead of key earnings added to growing worries about corporate profit growth. At 20h30 the S&P 500 was down 1.44%.
Europe
European shares failed to rebound on Wednesday as weak results from chipmaker STMicro and Deutsche Bank, kept the mood bearish despite strong results from Gucci owner Kering that boosted the luxury sector. The pan-European STOXX 600 fell 0.20%.
Hong Kong
Hong Kong shares reversed early gains to end lower on Wednesday as energy firms dropped on lower oil prices and as concerns lingered over economic risks posed by $620 billion worth of shares pledged for loans in mainland markets. At the close of trade, the Hang Seng index was down 0.40%.
Japan
Japan’s Nikkei recouped some of the previous day’s hefty losses on Wednesday, but gains were limited as investor sentiment was still fragile after the recent heavy selling in global shares. The Nikkei share average ended 0.40% higher.
Rand
The rand came under even more pressure in a stronger dollar environment with the euro weakening to $1.13 from $1.14 after the European Commission rejected Italy’s budget. When Mboweni started his speech the rand was at R14.27 to the dollar. About 10 minutes later, it hit R14.39, before weakening further to R14.44, 1.3% lower than when the minister started speaking.
Precious metals
Gold steadied off the previous day’s three-month peak on Wednesday as the dollar firmed, but prices held at elevated levels after this week’s drop in stock markets pointed to a weaker appetite for risk. Spot gold was little changed at $1 231.00 at 20h30.
Oil
Oil fell towards $75 a barrel, its lowest since late August, on Wednesday, pressured by concern that demand is weakening and supply ample even as US sanctions loom on oil exporter Iran. It recovered at 20h30 trading at $76.51.
Our little rant regarding the MTBS yesterday
We have one small issue with the MTBS yesterday and that is based on the insistance of the finance minister that E-tolls should be paid based on the user pay principle and that nothing is for free. Well yes you are right minister, nothing is for free. You as the government of South Africa are supposed to use the Personal Income Tax, VAT, Corporate Income Tax and the fuel levy to fund all your spending projects. If tax money was spent effectively and efficiently there would be no need for E-tolls. So let us say this to government. Fix you sh!t and you would be in so much financial sh!t