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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 27 November 2019
South Africa
Subdued Asian markets had a negative impact on the JSE on Tuesday as investors waited for new catalysts from the US-China trade talks. At the closing bell, the JSE All Share was down 1.22%.
United States
Wall Street indices were flat on Tuesday after retailers delivered mixed results, while investors sought clarity on the changing narratives from the US-China trade talks. Shortly after the JSE closed, the Dow was flat at 0.08%.
Europe
Dragged by London’s Compass Group, European markets opened lower on Tuesday, after the market heavyweight reported sluggish growth in its European business. At 18h15, the pan-European STOXX 600 Index climbed 0.15%.
Hong Kong
Alibaba Group shares slightly lifted the overall equity market in early trade on Tuesday, but markets ended lower due to profit-taking. The Hang Seng fell by 0.29%.
Japan
A rally in electronics and semiconductor-related stocks boosted Japan’s Nikkei to record highs on Tuesday amid a weakened yen environment. At close of trade, the Nikkei recorded a gain of 0.35%.
Rand
The local currency weakened against the dollar on Tuesday as investors waited for more developments from the US-China trade talks. At 18h30, the dollar was trading at R14.80.
Precious metals
Gold prices edged higher on Tuesday on easing signs of a partial trade pact between Washington and Beijing that could end a 16-month long trade war. An ounce of spot gold traded at $1 460.25 at 18h35.
Oil
Oil prices rose on Tuesday after a JPMorgan analyst said “the OPEC supply cut deal could be extended to the end of 2020”, while oil traders held onto the prospect of a trade pact. At 18h45, a barrel of Brent crude was up 0.40% and traded at $63.91.
Subdued Asian markets had a negative impact on the JSE on Tuesday as investors waited for new catalysts from the US-China trade talks. At the closing bell, the JSE All Share was down 1.22%.
United States
Wall Street indices were flat on Tuesday after retailers delivered mixed results, while investors sought clarity on the changing narratives from the US-China trade talks. Shortly after the JSE closed, the Dow was flat at 0.08%.
Europe
Dragged by London’s Compass Group, European markets opened lower on Tuesday, after the market heavyweight reported sluggish growth in its European business. At 18h15, the pan-European STOXX 600 Index climbed 0.15%.
Hong Kong
Alibaba Group shares slightly lifted the overall equity market in early trade on Tuesday, but markets ended lower due to profit-taking. The Hang Seng fell by 0.29%.
Japan
A rally in electronics and semiconductor-related stocks boosted Japan’s Nikkei to record highs on Tuesday amid a weakened yen environment. At close of trade, the Nikkei recorded a gain of 0.35%.
Rand
The local currency weakened against the dollar on Tuesday as investors waited for more developments from the US-China trade talks. At 18h30, the dollar was trading at R14.80.
Precious metals
Gold prices edged higher on Tuesday on easing signs of a partial trade pact between Washington and Beijing that could end a 16-month long trade war. An ounce of spot gold traded at $1 460.25 at 18h35.
Oil
Oil prices rose on Tuesday after a JPMorgan analyst said “the OPEC supply cut deal could be extended to the end of 2020”, while oil traders held onto the prospect of a trade pact. At 18h45, a barrel of Brent crude was up 0.40% and traded at $63.91.
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Our daily update
The summary below refers to the latest business cycle indicators as published by the South African Reserve Bank (SARB)
- The composite leading business cycle indicator decreased by 0.6% on a month-to-month basis in September 2019. Decreases in four of the nine available component time series outweighed increases in the remaining five. The largest negative contributions to the movement in the composite leading business cycle indicator in September came from a decrease in the number of residential building plans approved and a deceleration in the twelve-month percentage change in job advertisement space. The largest positive contributions came from an increase in the volume of orders in manufacturing and the US dollar-based South African export commodity price index.
- The composite coincident business cycle indicator decreased by 0.7% on a month-to-month basis in August 2019.
- The composite lagging business cycle indicator remained unchanged in August 2019.
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? Continued rumors about a trade deal between the USA and China keeps sparking optimism on the markets for a few days and then it dissipates. The JSE All Share Index is up currently down by -0.49% 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