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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 September 2019
South Africa
The JSE closed flat on Tuesday, despite better than expected GDP growth for the second quarter, with the local bourse mainly influenced by the protracted trade war between the US and China.
United States
US stocks fell on Tuesday as data showed factory activity for August shrank for the first time since 2016, renewing fears that a drawn-out trade US-Sino trade war could tip the world’s largest economy into recession. Shortly after the JSE closed, the Dow was down 1.40%.
Europe
European shares closed lower yesterday as weak US factory data added to worries about global growth, while uncertainty over Britain’s chaotic exit from the European Union knocked the FTSE 100 lower. Shortly after the JSE closed, the FTSE 100 lost 0.37%, France's CAC 40 dropped to 0.48% and Germany's DAX 30 was 0.24% lower.
Hong Kong
Hong Kong stocks fell on Tuesday as the deepening political crisis threatened to plunge the city into an economic recession, while festering US-Sino trade tensions continued to curb risk appetite. The Hang Seng index fell 0.37%.
Japan
Japanese shares closed flat on Tuesday as a weaker yen propped up exporting firms, although negative factors including the US-China trade war and Brexit concerns curbed market sentiment. The Nikkei ended the day up 0.02%.
Rand
The rand was firmer on Tuesday afternoon as investors reacted to better-than-expected GDP growth in the second quarter. With the economy growing by 3.10% after a decline of 3.10% in quarter one. At 20h00 a dollar traded at R15.11.
Precious metals
Gold prices held steady on Tuesday as uncertainties surrounding US-China trade relations and Britain's departure from the EU offset pressure from a stronger dollar. At 20h00, an ounce of gold traded at $1 546.93.
Oil
Oil prices fell on Tuesday, weighed down by the protracted US-China trade dispute as well as rising Opec and Russian oil output. At 20h00, an barrel of Brent crude traded at $58.50.
The JSE closed flat on Tuesday, despite better than expected GDP growth for the second quarter, with the local bourse mainly influenced by the protracted trade war between the US and China.
United States
US stocks fell on Tuesday as data showed factory activity for August shrank for the first time since 2016, renewing fears that a drawn-out trade US-Sino trade war could tip the world’s largest economy into recession. Shortly after the JSE closed, the Dow was down 1.40%.
Europe
European shares closed lower yesterday as weak US factory data added to worries about global growth, while uncertainty over Britain’s chaotic exit from the European Union knocked the FTSE 100 lower. Shortly after the JSE closed, the FTSE 100 lost 0.37%, France's CAC 40 dropped to 0.48% and Germany's DAX 30 was 0.24% lower.
Hong Kong
Hong Kong stocks fell on Tuesday as the deepening political crisis threatened to plunge the city into an economic recession, while festering US-Sino trade tensions continued to curb risk appetite. The Hang Seng index fell 0.37%.
Japan
Japanese shares closed flat on Tuesday as a weaker yen propped up exporting firms, although negative factors including the US-China trade war and Brexit concerns curbed market sentiment. The Nikkei ended the day up 0.02%.
Rand
The rand was firmer on Tuesday afternoon as investors reacted to better-than-expected GDP growth in the second quarter. With the economy growing by 3.10% after a decline of 3.10% in quarter one. At 20h00 a dollar traded at R15.11.
Precious metals
Gold prices held steady on Tuesday as uncertainties surrounding US-China trade relations and Britain's departure from the EU offset pressure from a stronger dollar. At 20h00, an ounce of gold traded at $1 546.93.
Oil
Oil prices fell on Tuesday, weighed down by the protracted US-China trade dispute as well as rising Opec and Russian oil output. At 20h00, an barrel of Brent crude traded at $58.50.
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Our daily update
Statistics South Africa published the latest economic growth numbers for South Africa yesterday. Below a short extract from our GDP page
The quarter on quarter annualised growth rates (fancy speak for assuming growth in the industry from Q2:2019 over Q1:2019 continued for a full year) for the various sectors of South Africa is summarised below:
So the South African economy avoids a recession but one has to remember it is coming off a very low base considering Q1:2019 was a horror show and loadshedding affected most industries thus we are comparing subdued numbers to even more subdued numbers which creates the impression of stronger economy but in actual fact the annual growth rate of 0.9% is still well below the population growth of South Africa, so each and every citizen in South Africa is getting less and less of the economic pie
Read the full article here
The quarter on quarter annualised growth rates (fancy speak for assuming growth in the industry from Q2:2019 over Q1:2019 continued for a full year) for the various sectors of South Africa is summarised below:
- Agriculture/forestry and fishing: -4.2%
- Mining: 14.4%
- Manufacturing: 2.1%
- Electricity/water and gas supply: 3.2%
- Construction: -1.6%
- Trade (wholesale, retail and motor trade): 3.9%
- Transport: -0.3
- Finance, Real Estate and business services: 4.1%
- Government: 3.4%
- Personal services: 0.8%
- Actual GDP for Q2:2019: 3.1%
So the South African economy avoids a recession but one has to remember it is coming off a very low base considering Q1:2019 was a horror show and loadshedding affected most industries thus we are comparing subdued numbers to even more subdued numbers which creates the impression of stronger economy but in actual fact the annual growth rate of 0.9% is still well below the population growth of South Africa, so each and every citizen in South Africa is getting less and less of the economic pie
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.
The first two trading days of September 2019 has been moderately negative for the JSE All Share Index. With the index being down -0.94% for this period.
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 first two trading days of September 2019 has been moderately negative for the JSE All Share Index. With the index being down -0.94% for this period.
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