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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 September 2019
South Africa
The JSE All Share closed flat on Friday, down 0.11%, as geopolitics and sceptic investor sentiment around the next round of US-China trade talks dominated global markets.
United States
The S&P 500 and Nasdaq slipped on Friday, pulled lower by a slide in Micron shares after the chipmaker blamed US-China trade tensions for its downbeat first-quarter profit forecast, but gains in financials kept the Dow in positive territory. At 18h20, the three leading US indices were trading flat.
Europe
European shares rose on Friday, with London stocks leading the pack due to a weaker pound, while hopes of a quick resolution to the US-China trade war offset worries of slowing economic growth and rising political risks. The pan-European STOXX 600 Index rose 0.50%.
Hong Kong
Hong Kong stocks dipped on Friday, weighed down by the persisting political crisis in the city and caution over US-China trade relations. The Hang Seng Index closed down 0.30%.
Japan
Japanese shares fell on Friday after Kansai Electric Power Co Inc revealed payments to executives from an outside individual, at a time the government is calling for improved governance to attract foreign investors. The Nikkei 225 Index ended down 0.77%.
Rand
The rand weakened further on Friday as global risk-off sentiment pushed emerging-market currencies lower and investors digested talks of impeaching US President Donald Trump. At 18h20, a dollar traded at R15.16.
Precious metals
Gold slipped on Friday and was heading for its worst week in six-months as investors sought safety in the dollar, lifting the currency to multi-week highs. An ounce of spot gold traded at $1 497.76 at 18h20.
Oil
Oil prices steadied on Friday on a faster-than-expected recovery in Saudi output, while investors also worried about global crude demand amid slowing Chinese economic growth. At 18h20, a barrel of Brent crude traded at $61.98.
The JSE All Share closed flat on Friday, down 0.11%, as geopolitics and sceptic investor sentiment around the next round of US-China trade talks dominated global markets.
United States
The S&P 500 and Nasdaq slipped on Friday, pulled lower by a slide in Micron shares after the chipmaker blamed US-China trade tensions for its downbeat first-quarter profit forecast, but gains in financials kept the Dow in positive territory. At 18h20, the three leading US indices were trading flat.
Europe
European shares rose on Friday, with London stocks leading the pack due to a weaker pound, while hopes of a quick resolution to the US-China trade war offset worries of slowing economic growth and rising political risks. The pan-European STOXX 600 Index rose 0.50%.
Hong Kong
Hong Kong stocks dipped on Friday, weighed down by the persisting political crisis in the city and caution over US-China trade relations. The Hang Seng Index closed down 0.30%.
Japan
Japanese shares fell on Friday after Kansai Electric Power Co Inc revealed payments to executives from an outside individual, at a time the government is calling for improved governance to attract foreign investors. The Nikkei 225 Index ended down 0.77%.
Rand
The rand weakened further on Friday as global risk-off sentiment pushed emerging-market currencies lower and investors digested talks of impeaching US President Donald Trump. At 18h20, a dollar traded at R15.16.
Precious metals
Gold slipped on Friday and was heading for its worst week in six-months as investors sought safety in the dollar, lifting the currency to multi-week highs. An ounce of spot gold traded at $1 497.76 at 18h20.
Oil
Oil prices steadied on Friday on a faster-than-expected recovery in Saudi output, while investors also worried about global crude demand amid slowing Chinese economic growth. At 18h20, a barrel of Brent crude traded at $61.98.
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Our daily update
On Friday we covered the latest Peregrine Treasury Services weekly market wrap. Below an extract of this article focusing on the outlook for the Rand.
Rand outlook weak
The week ahead will once again leave us at the mercy of the global environment, with markets keeping a keen eye on unfolding events such as the motion to impeach President Trump, calls for Boris Johnson to step down and the ongoing trade dynamic between the US and China. From a data perspective, a few important releases are set to take place locally, including new vehicle sales and the Standard Bank PMI, while we will keep an eye on Chinese and US manufacturing PMI, US unemployment and UK GDP numbers. The rand has moved towards a leg weaker, with the new target level being set at R15.06/$, with a break above this signaling a new bout of weakness that could see the currency target R15.20. The rand starts the day trading at R15.05/$, R16.44/€ and R18.55/£
Read the full article here
Rand outlook weak
The week ahead will once again leave us at the mercy of the global environment, with markets keeping a keen eye on unfolding events such as the motion to impeach President Trump, calls for Boris Johnson to step down and the ongoing trade dynamic between the US and China. From a data perspective, a few important releases are set to take place locally, including new vehicle sales and the Standard Bank PMI, while we will keep an eye on Chinese and US manufacturing PMI, US unemployment and UK GDP numbers. The rand has moved towards a leg weaker, with the new target level being set at R15.06/$, with a break above this signaling a new bout of weakness that could see the currency target R15.20. The rand starts the day trading at R15.05/$, R16.44/€ and R18.55/£
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.
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 the shortened trading week almost over the JSE All Share Index is down by -1.32% for the month of September 2019 with only one trading day to go. It seems like the JSE All Share Index will end another month in the red. While the month started off very positively it has since relinquished the gains it made and is now down by almost 25 with just a few more trading days to go in the month.
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 the shortened trading week almost over the JSE All Share Index is down by -1.32% for the month of September 2019 with only one trading day to go. It seems like the JSE All Share Index will end another month in the red. While the month started off very positively it has since relinquished the gains it made and is now down by almost 25 with just a few more trading days to go in the month.
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