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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 2 October 2019
South Africa
The JSE ended in the green on Tuesday as investors awaited new catalysts from the government on SA’s economic-growth trajectory. At the closing bell, the JSE All Share gained 0.22%.
United States
Wall Street indices fell on Tuesday after the release of negative US manufacturing data fuelled slow growth concerns. Just after the JSE closed, the Dow and S&P 500 lost 1.04% and 0.96% respectively.
Europe
Weak IHS Markit PMI data dragged European shares on Tuesday and fanned concerns of an economic slowdown. Shortly after the JSE closed, the FTSE 100 had lost 0.65%.
Hong Kong
Hong Kong markets were closed on Tuesday due to a public holiday.
Japan
Japanese stocks rose on Tuesday as data showed that manufacturers’ business confidence was better than expected amid simmering US-China trade tensions. At 18h50 the Nikkei had gained 0.59%.
Rand
The rand weakened against the dollar on Tuesday as emerging market currencies continued to feel the pressure from global risk-off sentiment. At 18h50, a dollar traded at R15.31.
Precious metals
Gold prices struggled for direction throughout Tuesday as the infamous trade war dampened interest in the metal as a haven from risk. An ounce of spot gold traded at $1 483.28 at 19h00.
Oil
Oil prices dropped on Tuesday on fading concerns of supply shortfalls and turmoil in the Middle East. At 19h15, a barrel of Brent crude traded at $60.94.
The JSE ended in the green on Tuesday as investors awaited new catalysts from the government on SA’s economic-growth trajectory. At the closing bell, the JSE All Share gained 0.22%.
United States
Wall Street indices fell on Tuesday after the release of negative US manufacturing data fuelled slow growth concerns. Just after the JSE closed, the Dow and S&P 500 lost 1.04% and 0.96% respectively.
Europe
Weak IHS Markit PMI data dragged European shares on Tuesday and fanned concerns of an economic slowdown. Shortly after the JSE closed, the FTSE 100 had lost 0.65%.
Hong Kong
Hong Kong markets were closed on Tuesday due to a public holiday.
Japan
Japanese stocks rose on Tuesday as data showed that manufacturers’ business confidence was better than expected amid simmering US-China trade tensions. At 18h50 the Nikkei had gained 0.59%.
Rand
The rand weakened against the dollar on Tuesday as emerging market currencies continued to feel the pressure from global risk-off sentiment. At 18h50, a dollar traded at R15.31.
Precious metals
Gold prices struggled for direction throughout Tuesday as the infamous trade war dampened interest in the metal as a haven from risk. An ounce of spot gold traded at $1 483.28 at 19h00.
Oil
Oil prices dropped on Tuesday on fading concerns of supply shortfalls and turmoil in the Middle East. At 19h15, a barrel of Brent crude traded at $60.94.
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Our daily update
In their latest monetary policy review presentation The South African Reserve Bank mentioned that risk aversion is getting in the way of the search for yield. And with it they provided two graphics. One showing the gold price (gold is seen as a safe haven asset) and the other graphic the performance of Developed vs Emerging stock markets since 2015. Below the two graphics.
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.
While the month of August was negative by -1.73% lets see what the month of September holds for the South African stock market.
So for the month September 2019 the JSE All Share Index ended the day down -2.01%. While the month started off very positively it has since relinquished the gains it made and ended the month down slightly at -2.01%
There continues to be concerns about a global economic slow down largely driven by the trade ware between the US and China. Continued tariffs by the US on Chinese goods and the retaliation by China by raising tariffs on US goods keeps hurting markets and global economic growth, as the world's two biggest economies continue to stand off in this trade war.
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
So for the month September 2019 the JSE All Share Index ended the day down -2.01%. While the month started off very positively it has since relinquished the gains it made and ended the month down slightly at -2.01%
There continues to be concerns about a global economic slow down largely driven by the trade ware between the US and China. Continued tariffs by the US on Chinese goods and the retaliation by China by raising tariffs on US goods keeps hurting markets and global economic growth, as the world's two biggest economies continue to stand off in this trade war.
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