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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 26 April 2019
South Africa
The local market continued its fall on Thursday due to rising investor fears around the current state of the global economy after the release of weak data dampened sentiment. At the close of trade, the All Share was 0.50% in the negative.
United States
The Nasdaq opened Thursday on a high note thanks to the uplifting results released by the tech giants, Facebook and Microsoft. And although the US capital goods orders for March was the highest in eight months, jobless claims also hit record highs. At 20h45, the Nasdaq was 0.39% up.
Europe
On Thursday, disappointing earnings results from Nokia and reports of a failed merger dragged the already downbeat sentiment of investors lower. At the close of trade, the STOXX 600 was 0.21% lower.
Hong Kong
Chinese shares fell to their lowest level in three weeks on Thursday as investors’ concerns over the slowing economic growth rate rose and the central bank showed no plans to adapt policies. The Shanghai Composite Index closed 2.43% in the red.
Japan
Japanese markets were pleasantly surprised on Thursday as an array of corporate earnings reports came out “less bad than some investors had feared” and as risk-off trade slowed ahead of the holidays. The Nikkei ended the day up 0.48%.
Rand
Although the rand slipped below R14.50 to the dollar on Thursday, it made up some ground towards the end of trade as South African-focused investors monitored election news closely. At 20h50, the rand traded R14.42 against the dollar and R16.05 against the euro.
Precious metals
On Thursday, bullion prices were lifted by renewed fears around slowing global economic growth as investors search for safer options. At 20h50, spot gold was trading at $1 277.08 an ounce.
Oil
For the first time in almost six months, Brent crude prices broke the $75 barrier on Thursday, albeit briefly, after Europe halted imports from Russia due to a possible contaminated Druzhba pipeline. At 20h50, Brent crude was trading at $74.22 per barrel.
The local market continued its fall on Thursday due to rising investor fears around the current state of the global economy after the release of weak data dampened sentiment. At the close of trade, the All Share was 0.50% in the negative.
United States
The Nasdaq opened Thursday on a high note thanks to the uplifting results released by the tech giants, Facebook and Microsoft. And although the US capital goods orders for March was the highest in eight months, jobless claims also hit record highs. At 20h45, the Nasdaq was 0.39% up.
Europe
On Thursday, disappointing earnings results from Nokia and reports of a failed merger dragged the already downbeat sentiment of investors lower. At the close of trade, the STOXX 600 was 0.21% lower.
Hong Kong
Chinese shares fell to their lowest level in three weeks on Thursday as investors’ concerns over the slowing economic growth rate rose and the central bank showed no plans to adapt policies. The Shanghai Composite Index closed 2.43% in the red.
Japan
Japanese markets were pleasantly surprised on Thursday as an array of corporate earnings reports came out “less bad than some investors had feared” and as risk-off trade slowed ahead of the holidays. The Nikkei ended the day up 0.48%.
Rand
Although the rand slipped below R14.50 to the dollar on Thursday, it made up some ground towards the end of trade as South African-focused investors monitored election news closely. At 20h50, the rand traded R14.42 against the dollar and R16.05 against the euro.
Precious metals
On Thursday, bullion prices were lifted by renewed fears around slowing global economic growth as investors search for safer options. At 20h50, spot gold was trading at $1 277.08 an ounce.
Oil
For the first time in almost six months, Brent crude prices broke the $75 barrier on Thursday, albeit briefly, after Europe halted imports from Russia due to a possible contaminated Druzhba pipeline. At 20h50, Brent crude was trading at $74.22 per barrel.
Our daily update
Yesterday we provided readers with insights from Coronation Fund Managers regarding their views on South Africa's economy and our economic policies. A short snippet of the article follows.
WE STARTED THE year cautiously optimistic that a cyclical recovery, driven by some acceleration in consumer spending, was a reasonable expectation for the year ahead. However, we cautioned that anything more durable needed a commitment to accelerated policy reform and that time to deliver was short. We also cautioned that Eskom remained the biggest, most immediate threat to growth. At the end of the first quarter of 2019, we must reset these expectations. We still expect consumer spending to be the biggest driver of growth, and for growth to be marginally better than last year, but the starting point has weakened, time is even more of the essence and Eskom has indeed become the biggest threat to growth.
Read the full article here.
WE STARTED THE year cautiously optimistic that a cyclical recovery, driven by some acceleration in consumer spending, was a reasonable expectation for the year ahead. However, we cautioned that anything more durable needed a commitment to accelerated policy reform and that time to deliver was short. We also cautioned that Eskom remained the biggest, most immediate threat to growth. At the end of the first quarter of 2019, we must reset these expectations. We still expect consumer spending to be the biggest driver of growth, and for growth to be marginally better than last year, but the starting point has weakened, time is even more of the essence and Eskom has indeed become the biggest threat to growth.
Read the full article 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 JSE All Share Index has increased by 4.11% for the month of April 2019. This is by far the strongest showing of any of the months of 2019 and the JSE All Share Index looks set to provide investors with four straight months of positive returns. See our 2019 Calendar tracker for more.
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
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