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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 November 2019
South Africa
The local bourse ended the week on a high ahead of S&P Global Ratings changing its outlook on South Africa’s credit from stable to negative Friday evening. According to a Bloomberg survey, 16 out of 22 experts questioned are anticipating the ratings agency to change it to negative. The Top 40 closed up 0.50%.
United States
Wall Street indices opened higher on Friday as positive comments by US President Donald Trump regarding the trade deal with China boosted investor sentiment. At 17h50, the Dow traded 0.23% in the green.
Europe
European markets made up some losses on Friday on the back of positive Eurozone economic data and improvements in all but one European sub-sector.The pan-European STOXX 600 Index climbed 0.44%.
Hong Kong
Hong Kong shares rose on Friday as the financial capital had a two-day lull in protestor violence ahead of their elections. The Hang Seng Index rose 0.34% for the day.
Japan
Japanese indices rose on Friday as investors acted with cautious optimism on reports that both the US and China are hoping to reach a plausible trade deal. The Nikkei closed up 0.32%.
Rand
The local currency held steady on Friday as investors awaited concrete action regarding the trade war and for S&P Global Ratings to reveal their credit rating on South Africa. At 17h50, the rand was trading R14.70 to the US dollar.
Precious metals
Gold prices fell somewhat on Friday after the releases of upbeat US economic data boosted the dollar and Treasuries. An ounce of gold cost $1 466.06 at 17h50.
Oil
Oil prices eased slightly on Friday as markets expect OPEC and its associates to extend production cuts at their December meeting. Brent crude traded at $64.12 a barrel at 17h50.
The local bourse ended the week on a high ahead of S&P Global Ratings changing its outlook on South Africa’s credit from stable to negative Friday evening. According to a Bloomberg survey, 16 out of 22 experts questioned are anticipating the ratings agency to change it to negative. The Top 40 closed up 0.50%.
United States
Wall Street indices opened higher on Friday as positive comments by US President Donald Trump regarding the trade deal with China boosted investor sentiment. At 17h50, the Dow traded 0.23% in the green.
Europe
European markets made up some losses on Friday on the back of positive Eurozone economic data and improvements in all but one European sub-sector.The pan-European STOXX 600 Index climbed 0.44%.
Hong Kong
Hong Kong shares rose on Friday as the financial capital had a two-day lull in protestor violence ahead of their elections. The Hang Seng Index rose 0.34% for the day.
Japan
Japanese indices rose on Friday as investors acted with cautious optimism on reports that both the US and China are hoping to reach a plausible trade deal. The Nikkei closed up 0.32%.
Rand
The local currency held steady on Friday as investors awaited concrete action regarding the trade war and for S&P Global Ratings to reveal their credit rating on South Africa. At 17h50, the rand was trading R14.70 to the US dollar.
Precious metals
Gold prices fell somewhat on Friday after the releases of upbeat US economic data boosted the dollar and Treasuries. An ounce of gold cost $1 466.06 at 17h50.
Oil
Oil prices eased slightly on Friday as markets expect OPEC and its associates to extend production cuts at their December meeting. Brent crude traded at $64.12 a barrel at 17h50.
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Our daily update
So sadly for South Africans on Thursday the South African Reserve Bank (SARB) monetary policy committee decided to keep interest rates unchanged. This with inflation now well below the mid point between the 3% to 6% range as set out by SARB. The vote was 2 in favour of a cut and 3 in favour of keeping interest rates unchanged. We believe that the South African Reserve Bank is far behind the 8 ball and should be aggressively cutting rates now in order to try and revive economic growth in South Africa. It is after all part of their mandate. But they do tend to ignore this part of their mandate and just focus on stable price, but hardly ever worry about that part that says stable prices in the pursuit of balanced growth.From the South African Reserve Bank's behaviour over the years it is clear that they have no interest in assisting South Africa's economy grow.
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 1.69% 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