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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 3 October 2019
South Africa
The JSE fell to a one-month low on Wednesday as global growth concerns weighed on the local bourse. This comes after the ANC held a media briefing to present its plans to boost the struggling economy. At the closing bell, the JSE All Share lost 1.60%.
United States
Wall Street indices fell on Wednesday following an unexpected decline in manufacturing activity. Just after the JSE closed, the Dow and S&P 500 lost 2.22% and 2.21% respectively.
Europe
Most European markets fell on Wednesday on concerns of a prolonged US-Sino trade war and its impact on the global economy. Shortly after the JSE closed, the FTSE 100 had lost 3.23%.
Hong Kong
Disappointing economic data from the US dragged Hong Kong stocks on Wednesday while local turmoil continued to dampen sentiment. The Hang Seng lost 0.19%.
Japan
Japanese stocks fell on Wednesday following the release of poor manufacturing data from the US, which confirmed that the trade war was weighing on global growth. At 19h10, the Nikkei had lost 0.49%.
Rand
The rand weakened for a sixth consecutive day on Wednesday as emerging market currencies felt pressure from global risk-off sentiment. Investors also sought new catalysts from the ANC’s briefing on its plans to rescue the economy. At 19h15 a dollar traded at R15.27.
Precious metals
Gold prices went up on Wednesday as poor manufacturing data from the US fuelled fears of a global economic slowdown. An ounce of spot gold traded at $1 501.85 at 19h15.
Oil
Oil prices plunged on Wednesday due to depressed global stock markets and persistent turmoil in the Middle East. At 19h20 a barrel of Brent crude traded at $58.20.
The JSE fell to a one-month low on Wednesday as global growth concerns weighed on the local bourse. This comes after the ANC held a media briefing to present its plans to boost the struggling economy. At the closing bell, the JSE All Share lost 1.60%.
United States
Wall Street indices fell on Wednesday following an unexpected decline in manufacturing activity. Just after the JSE closed, the Dow and S&P 500 lost 2.22% and 2.21% respectively.
Europe
Most European markets fell on Wednesday on concerns of a prolonged US-Sino trade war and its impact on the global economy. Shortly after the JSE closed, the FTSE 100 had lost 3.23%.
Hong Kong
Disappointing economic data from the US dragged Hong Kong stocks on Wednesday while local turmoil continued to dampen sentiment. The Hang Seng lost 0.19%.
Japan
Japanese stocks fell on Wednesday following the release of poor manufacturing data from the US, which confirmed that the trade war was weighing on global growth. At 19h10, the Nikkei had lost 0.49%.
Rand
The rand weakened for a sixth consecutive day on Wednesday as emerging market currencies felt pressure from global risk-off sentiment. Investors also sought new catalysts from the ANC’s briefing on its plans to rescue the economy. At 19h15 a dollar traded at R15.27.
Precious metals
Gold prices went up on Wednesday as poor manufacturing data from the US fuelled fears of a global economic slowdown. An ounce of spot gold traded at $1 501.85 at 19h15.
Oil
Oil prices plunged on Wednesday due to depressed global stock markets and persistent turmoil in the Middle East. At 19h20 a barrel of Brent crude traded at $58.20.
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Our daily update
Yesterday we covered the latest Monetary Policy Review from the South African Reserve Bank. Below an extract from the article.
The impact of ESKOM's load shedding is clear with a slump in South Africa's economic growth during the 1st quarter of 2019 (see the image below). So ESKOM is not only dragging the South African finances down with the continued bail outs by the SA government of ESKOM but it's also a major contributor to the fortunes or misfortunes of the South African economy. So essentially the South African government is being held hostage by one of its state owned entities as a collapse of ESKOM would see a collapse of South Africa's economy, which is the last thing the South African government would want. So they are keeping it afloat at all costs.
Read the full article here
The impact of ESKOM's load shedding is clear with a slump in South Africa's economic growth during the 1st quarter of 2019 (see the image below). So ESKOM is not only dragging the South African finances down with the continued bail outs by the SA government of ESKOM but it's also a major contributor to the fortunes or misfortunes of the South African economy. So essentially the South African government is being held hostage by one of its state owned entities as a collapse of ESKOM would see a collapse of South Africa's economy, which is the last thing the South African government would want. So they are keeping it afloat at all costs.
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 for the month September 2019 the JSE All Share Index ended the month down -2.01%. And October 2019 is of to horrid start, with the markets slumping to a one month low after the sharp decline of -1.6% in the JSE All Share Index yesterday.
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. Added to market worries is the impeachment investigation currently taking place against President Donald Trump due to him asking Ukraine's president to investigate his political rivals, which most believe is a clear abuse of his powers.
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 month down -2.01%. And October 2019 is of to horrid start, with the markets slumping to a one month low after the sharp decline of -1.6% in the JSE All Share Index yesterday.
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. Added to market worries is the impeachment investigation currently taking place against President Donald Trump due to him asking Ukraine's president to investigate his political rivals, which most believe is a clear abuse of his powers.
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