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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 29 October 2019
South Africa
The JSE started the week on a high note as investor sentiment rose due to reports that a US-Sino tariff war deal could be near and ahead of important economic events, such as the upcoming South African medium-term budget policy statement. At the closing bell, the All Share gained 1.12%.
United States
US indices opened in the green on Monday because of positive market sentiment that the US and China might reach a tariff deal and that the US Federal Reserve Bank (Fed) could lower borrowing rates later this week. At 18h10, the Nasdaq was up 0.91%.
Europe
European markets enjoyed an upturn on Monday, boosted by optimism that a trade deal between the US and China could be reached and that the Fed will cut US interest rates further. The STOXX 600 rose 0.34%.
Hong Kong
Tech firms boosted Asian markets on Monday, leading the Hang Seng to a six-week high, as investors were excited by US-Sino trade talk progress. At the close of trade, the Hang Seng Index was 0.85% in the green.
Japan
The Nikkei reached a one-year high on Monday as investors shifted funds to global cyclicals on the back of hopes that the US and China might reach a trade deal. The Nikkei closed up 0.30%.
Rand
The local currency started the week strong, reaching a six-week high, as investors looked past “an uncertain local and global backdrop and kept buying the high-yielding currency” while Sasol boosted local markets. At 18h10, a dollar traded at R14.55.
Precious metals
Although gold prices dipped on Monday due to the increase in the equity market and expectations that the Fed could cut rates, palladium soared to a record $1 800 per ounce. At 18h10, gold traded at $1 491.49 per ounce.
Oil
Despite global optimism around the US-China trade war, oil prices took a knock on Monday. It was weighed down by concerns over weak Chinese industrial data. A barrel of Brent crude traded at $61.78 at 18h10.
The JSE started the week on a high note as investor sentiment rose due to reports that a US-Sino tariff war deal could be near and ahead of important economic events, such as the upcoming South African medium-term budget policy statement. At the closing bell, the All Share gained 1.12%.
United States
US indices opened in the green on Monday because of positive market sentiment that the US and China might reach a tariff deal and that the US Federal Reserve Bank (Fed) could lower borrowing rates later this week. At 18h10, the Nasdaq was up 0.91%.
Europe
European markets enjoyed an upturn on Monday, boosted by optimism that a trade deal between the US and China could be reached and that the Fed will cut US interest rates further. The STOXX 600 rose 0.34%.
Hong Kong
Tech firms boosted Asian markets on Monday, leading the Hang Seng to a six-week high, as investors were excited by US-Sino trade talk progress. At the close of trade, the Hang Seng Index was 0.85% in the green.
Japan
The Nikkei reached a one-year high on Monday as investors shifted funds to global cyclicals on the back of hopes that the US and China might reach a trade deal. The Nikkei closed up 0.30%.
Rand
The local currency started the week strong, reaching a six-week high, as investors looked past “an uncertain local and global backdrop and kept buying the high-yielding currency” while Sasol boosted local markets. At 18h10, a dollar traded at R14.55.
Precious metals
Although gold prices dipped on Monday due to the increase in the equity market and expectations that the Fed could cut rates, palladium soared to a record $1 800 per ounce. At 18h10, gold traded at $1 491.49 per ounce.
Oil
Despite global optimism around the US-China trade war, oil prices took a knock on Monday. It was weighed down by concerns over weak Chinese industrial data. A barrel of Brent crude traded at $61.78 at 18h10.
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Our daily update
Tomorrow the South African Reserve Bank (SARB) monetary policy committee sits for two days to decide on South Africa's Repo rate, and we believe SARB will find it very hard to justify not cutting interest rates considering South Africa's moderate levels of inflation and extremely low levels of economic growth. Thursday afternoon around 3pm South Africans will know if their cars, personal debt, mortgages will cost them a little bit.
Read more about the latest inflation rate of South Africa here
Read more about the latest inflation rate of South Africa 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 for the month September 2019 the JSE All Share Index ended the month down -2.01%. Midway through the trading month of October 2019 and the JSE All Share Index is up by 1.28%. Question is whether it can hold on to the gains made for the rest of the month. There seems to be a softening of the trade wars rhetoric as both the USA and China looks to avoid further damage being caused to their economies and it looks like the UK might be striking a deal with the EU to leave the EU. Seems Brexit might finally be happening (unless the UK parliament delays matters and more extensions to the Brexit deadline is required)
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