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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 25 March 2019
South Africa
The JSE closed flat on Friday, as local precious metal miners extended gains, benefiting from rising prices for some commodities. The All Share ended the day 0.07% lower.
United States
Wall Street’s main indexes tumbled about 2% on Friday after a raft of weak manufacturing data from the US and Europe led to an inverted yield curve, stoking fears of an economic slowdown. Shortly after the JSE closed the Dow was down 1.18%.
Europe
European shares and the euro fell on Friday after another set of disappointing German economic data added to fears of a global slowdown prompted by this week’s dovish turn by the US Federal Reserve (Fed). Shortly after the JSE closed the FTSE 100 had lost 1.99%, the CAC 40 1.81% and DAX 30 1.21%.
Hong Kong
Asian markets fell on Friday, tracking a global selloff, as investors ditched shares and fled to the safety of bonds on growing fears about a US recession. The Hang Seng index dropped 1.20%.
Japan
The Nikkei ended little changed on Friday as chip-related stocks offset weaknesses in financial stocks and drug-makers, which tumbled after Eisai said it will end its Alzheimer drug trials. The Nikkei closed flat at 0.09%.
Rand
While the rand firmed against the dollar on Wednesday night, after the Fed delivered a dovish monetary policy message, it weakened on Friday after disappointing German data. At 19h30 one euro cost R16.36.
Precious metals
Gold prices rose on Friday as disappointing economic data from the Eurozone added to concerns of a slowdown in global growth and drove investors away from riskier assets. Spot gold was up by 0.26% trading at $1 312.76 at 19h30.
Oil
Oil fell on Friday, but was set for a third consecutive week of gains due to supply cuts led by producer club Opec and by US sanctions on Iran and Venezuela. Brent crude traded at $66.32 a barrel at 19h30.
The JSE closed flat on Friday, as local precious metal miners extended gains, benefiting from rising prices for some commodities. The All Share ended the day 0.07% lower.
United States
Wall Street’s main indexes tumbled about 2% on Friday after a raft of weak manufacturing data from the US and Europe led to an inverted yield curve, stoking fears of an economic slowdown. Shortly after the JSE closed the Dow was down 1.18%.
Europe
European shares and the euro fell on Friday after another set of disappointing German economic data added to fears of a global slowdown prompted by this week’s dovish turn by the US Federal Reserve (Fed). Shortly after the JSE closed the FTSE 100 had lost 1.99%, the CAC 40 1.81% and DAX 30 1.21%.
Hong Kong
Asian markets fell on Friday, tracking a global selloff, as investors ditched shares and fled to the safety of bonds on growing fears about a US recession. The Hang Seng index dropped 1.20%.
Japan
The Nikkei ended little changed on Friday as chip-related stocks offset weaknesses in financial stocks and drug-makers, which tumbled after Eisai said it will end its Alzheimer drug trials. The Nikkei closed flat at 0.09%.
Rand
While the rand firmed against the dollar on Wednesday night, after the Fed delivered a dovish monetary policy message, it weakened on Friday after disappointing German data. At 19h30 one euro cost R16.36.
Precious metals
Gold prices rose on Friday as disappointing economic data from the Eurozone added to concerns of a slowdown in global growth and drove investors away from riskier assets. Spot gold was up by 0.26% trading at $1 312.76 at 19h30.
Oil
Oil fell on Friday, but was set for a third consecutive week of gains due to supply cuts led by producer club Opec and by US sanctions on Iran and Venezuela. Brent crude traded at $66.32 a barrel at 19h30.
Our daily update
According to Statistics South Africa, the February 2019 inflation rate of 4.1% was nudged higher from 4% in January 2019 by medical aid and transport costs. And with the new levies and taxes on various products such as alcohol and tobacco and fuel levies and road accident fund levies announced by Minister Mboweni in the budget speech set to kick in in April, we expect to see inflation continue ticking up from current levels. We do however expect the South Africa Reserve Bank (SARB) to hold on raising interest rates due to the struggling economy.
For more on South Africa's latest inflation drivers see here.
For more on South Africa's latest inflation drivers see 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 last trading day before the public holiday was a extremely negative day on the JSE, with the one day wiping out most of the gains made during the month on the market. The public holiday on Thursday (21 March 2019) meant there was no trade taking place. Friday saw a very subdued and flat day with the market ending the day down -0.07%. The overall return for the markets since the start of March 2019 is 0.16%. So basically flat for March but still up for the year since January and February showed positive returns.
And while there overall returns of the JSE All Share so far in 2019 has been positive (as shown by our 2019 Calendar tracker) we are losing out in Dollar terms. 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
And while there overall returns of the JSE All Share so far in 2019 has been positive (as shown by our 2019 Calendar tracker) we are losing out in Dollar terms. 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