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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 30 August 2019
South Africa
Following global markets’ lead, the JSE closed higher on Thursday in light of China expressing their desires for smoother negotiations with the US, which lifted sentiment. The JSE All Share closed 0.57% up.
United States
US indices started Thursday off sprinting, thanks to China lifting hopes that a conclusion to the trade war with the US might be in sight. At 19h10, the Nasdaq was 1.54% in the green.
Europe
European markets bounced back from a weak opening on Thursday afternoon, boosted by a rally in Italian shares and optimistic comments by China regarding the tariff war. The STOXX 600 ended the day 1.04% higher.
Hong Kong
Despite starting Thursday down, Asian shares made up gains towards the close of trade on new comments from China raising hopes that the two superpowers could reach an agreement. The Hang Seng Index rose 0.47%.
Japan
Japanese markets posted losses on Thursday as investors acted with caution due to the latest Brexit developments and the continuous tariff-war conflict, signalling possible turbulence in the financial markets. The Nikkei Index closed 0.01% lower.
Rand
The rand led gains in emerging-market currencies towards the end of trade after Chinese officials announced that they “hope the US will create conducive conditions for the two to negotiate trade terms next month”. At 19h10, a dollar traded at R15.29.
Precious metals
Bullion prices had a stellar Thursday with silver reaching its highest point in over two years, palladium rising 1% and platinum 2.80%; the highest platinum's been in about 18 months. At 19h10, an ounce of spot gold traded at R1 526.97.
Oil
Oil recorded another day of gains on Thursday due to the sharp drop in US stockpiles and concerns that the approaching Hurricane Dorian might dampen offshore US oil production. At 19h10, a barrel of Brent crude traded at $60.78.
Following global markets’ lead, the JSE closed higher on Thursday in light of China expressing their desires for smoother negotiations with the US, which lifted sentiment. The JSE All Share closed 0.57% up.
United States
US indices started Thursday off sprinting, thanks to China lifting hopes that a conclusion to the trade war with the US might be in sight. At 19h10, the Nasdaq was 1.54% in the green.
Europe
European markets bounced back from a weak opening on Thursday afternoon, boosted by a rally in Italian shares and optimistic comments by China regarding the tariff war. The STOXX 600 ended the day 1.04% higher.
Hong Kong
Despite starting Thursday down, Asian shares made up gains towards the close of trade on new comments from China raising hopes that the two superpowers could reach an agreement. The Hang Seng Index rose 0.47%.
Japan
Japanese markets posted losses on Thursday as investors acted with caution due to the latest Brexit developments and the continuous tariff-war conflict, signalling possible turbulence in the financial markets. The Nikkei Index closed 0.01% lower.
Rand
The rand led gains in emerging-market currencies towards the end of trade after Chinese officials announced that they “hope the US will create conducive conditions for the two to negotiate trade terms next month”. At 19h10, a dollar traded at R15.29.
Precious metals
Bullion prices had a stellar Thursday with silver reaching its highest point in over two years, palladium rising 1% and platinum 2.80%; the highest platinum's been in about 18 months. At 19h10, an ounce of spot gold traded at R1 526.97.
Oil
Oil recorded another day of gains on Thursday due to the sharp drop in US stockpiles and concerns that the approaching Hurricane Dorian might dampen offshore US oil production. At 19h10, a barrel of Brent crude traded at $60.78.
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Our daily update
Yesterday Woolworths released their latest results, and the impairments on David Jones keeps hurting the overall group's earnings. But it is clear from the results that Woolworths Foods is now their crown jewel. The image below shows the numbers achieved by Woolworths foods over the last year.
- Woolworths Foods Turnover: R32.323 billion for the year.
- Gross profit margin of Woolworths Foods: 24.9%
- Operating profit margin of Woolworths Foods: 7.2%
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 South African stock market is still up substantially for the year, with the only negative months so far being the month of May in which markets pulled back pretty sharply. But the markets rebounded in June with it ending up close to 5% for the month.
The JSE All Share Index ended the month of July down by -2.6%. Only the second negative month for the JSE in 2019. So far August has gotten off to a horrible start, with the JSE All Share index losing -3.29% as we head towards the end of August 2019. The strong decline for August 2019 is largely driven by the trade and currency war going on between the United States and China. And based on the skittish markets we suspect that August will end well in the red.
There are continued and growing concerns about a global 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
The JSE All Share Index ended the month of July down by -2.6%. Only the second negative month for the JSE in 2019. So far August has gotten off to a horrible start, with the JSE All Share index losing -3.29% as we head towards the end of August 2019. The strong decline for August 2019 is largely driven by the trade and currency war going on between the United States and China. And based on the skittish markets we suspect that August will end well in the red.
There are continued and growing concerns about a global 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