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PSG daily investment update 31 October 2018
Date: 31 October 2018 Category: Stock Market |
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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 rant at the end.
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Short summary of PSG's market commentary for 31 October 2018
South Africa
The JSE extended its rough start to the week and closed weaker on Tuesday, as the local bourse was dragged by Naspers, which ended the day 3.55% lower at R2 370, its weakest level since March 2017. This extended overall losses for the year to 31.30% while sentiment was hurt by the latest quarterly labour force survey results, indicating that the unemployment rate rose to 27.50% in the third quarter from 27.20% in the second. The JSE All Share closed 1.10% lower.
United States
US stocks traded slightly higher on Tuesday, as the stock market looked set to see whipsaw action that has characterised market performance in October. The Dow Jones Industrial Average was up 1% at 24 690 points, bolstered by advances in shares of Goldman Sachs Group Inc. At 18h45 local time, the S&P 500 closed 0.64% higher.
Europe
European stocks struggled for direction on Tuesday, as investors kept a close eye on a number of earnings results amid heightened global trade tensions. Market focus was mostly attuned to the US-China trade war after news reports suggested the US could be gearing up to slap tariffs on all remaining Chinese imports in December if talks between presidents Donald Trump and Xi Jinping breakdown next month. The pan-European STOXX 600 benchmark finished 0.08% in the green.
Hong Kong
Headline shares in Hong Kong traded lower on Tuesday, haunted by renewed fears of a looming trade war after reports that the US is preparing to announce tariffs on all remaining Chinese imports if next month's talks between the two heads of state fail. The Hang-Seng index ended the day 0.48% lower.
Japan
Japan's Nikkei made gains of 1.44% on Tuesday, as investors sought under-valued cyclical stocks while firms raised their annual forecasts, which reinforced fresh worries over trade frictions between the US and China. The Nikkei share average ended higher on 21 454.01 points.
Rand
The rand was firmer against major global currencies on Tuesday, as it shrugged off mixed signals from equity markets in afternoon trade after market jitters over the trade dispute between the US and China resurfaced. At 17h45 the rand traded R14.58 against the dollar.
Precious metals
Gold prices took a knock on Tuesday afternoon, as the dollar strengthened amid fears of a mounting trade dispute between the world’s two biggest economies, leaving the precious metal near key technical levels that might prompt fresh speculative bets for prices to fall further. Spot gold was trading at $1 224.60 an ounce at 17h45.
Oil
Oil prices slipped on Tuesday, pulled down by signs of rising global supply, despite looming sanctions against Iran and worries that the US-China trade dispute will hurt economic growth. At 18h50 Benchmark Brent crude was trading at $76.12 a barrel.
The JSE extended its rough start to the week and closed weaker on Tuesday, as the local bourse was dragged by Naspers, which ended the day 3.55% lower at R2 370, its weakest level since March 2017. This extended overall losses for the year to 31.30% while sentiment was hurt by the latest quarterly labour force survey results, indicating that the unemployment rate rose to 27.50% in the third quarter from 27.20% in the second. The JSE All Share closed 1.10% lower.
United States
US stocks traded slightly higher on Tuesday, as the stock market looked set to see whipsaw action that has characterised market performance in October. The Dow Jones Industrial Average was up 1% at 24 690 points, bolstered by advances in shares of Goldman Sachs Group Inc. At 18h45 local time, the S&P 500 closed 0.64% higher.
Europe
European stocks struggled for direction on Tuesday, as investors kept a close eye on a number of earnings results amid heightened global trade tensions. Market focus was mostly attuned to the US-China trade war after news reports suggested the US could be gearing up to slap tariffs on all remaining Chinese imports in December if talks between presidents Donald Trump and Xi Jinping breakdown next month. The pan-European STOXX 600 benchmark finished 0.08% in the green.
Hong Kong
Headline shares in Hong Kong traded lower on Tuesday, haunted by renewed fears of a looming trade war after reports that the US is preparing to announce tariffs on all remaining Chinese imports if next month's talks between the two heads of state fail. The Hang-Seng index ended the day 0.48% lower.
Japan
Japan's Nikkei made gains of 1.44% on Tuesday, as investors sought under-valued cyclical stocks while firms raised their annual forecasts, which reinforced fresh worries over trade frictions between the US and China. The Nikkei share average ended higher on 21 454.01 points.
Rand
The rand was firmer against major global currencies on Tuesday, as it shrugged off mixed signals from equity markets in afternoon trade after market jitters over the trade dispute between the US and China resurfaced. At 17h45 the rand traded R14.58 against the dollar.
Precious metals
Gold prices took a knock on Tuesday afternoon, as the dollar strengthened amid fears of a mounting trade dispute between the world’s two biggest economies, leaving the precious metal near key technical levels that might prompt fresh speculative bets for prices to fall further. Spot gold was trading at $1 224.60 an ounce at 17h45.
Oil
Oil prices slipped on Tuesday, pulled down by signs of rising global supply, despite looming sanctions against Iran and worries that the US-China trade dispute will hurt economic growth. At 18h50 Benchmark Brent crude was trading at $76.12 a barrel.
Our daily rant..
Today's rant relates to Bitcoin. Why on earth are radio stations and news readers across various stations providing the price of Bitcoin among the market indicators? Seriously there cannot be so many people invested in Bitcoin in South Africa that radio and news channels feel the need to quote the Rand price of a Bitcoin? South Africans are struggling to make ends meet, continuing to take on mountains of debt, so why would or are they dabbling in something as risky as Bitcoin? Are South Africans that desperate to make a quick buck to get out of their current financial predicaments? Well if this is the case then casino's can expect a lot more people coming through their doors too.