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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 5 March 2019
South Africa
Despite a choppy day of trade on the local markets, news that the US and China are close to ending their prolonged trade dispute boosted global risk assets on Monday, with the local bourse pushing higher in the afternoon following a stellar performance by Naspers. At market close, the All Share was 0.02% higher.
United States
US shares traded higher on Monday boosted by optimism that Beijing and Washington would reach a trade agreement as soon as this month to halt steep tariffs on billions of dollars’ worth of both Chinese and American goods. At close of trade, the NASDAQ was 0.84% higher.
Europe
Stock markets cheered reports that two of the world’s biggest economies might reach a trade deal later this month, with European markets tracking their Asian counterparts into positive territory. The pan-European STOXX 600 index closed up 0.43%.
Hong Kong
Hong Kong shares reached their highest level in over eight months as Washington and Beijing were said to be nearing a deal to end their prolonged trade war. The Hang Seng ended the day 0.54% higher.
Japan
The Nikkei peaked at a new three-month high on Monday following a global rally in shares as reports surfaced that a trade deal to end a lengthy trade dispute between the US and China is within reach. At market close, the Nikkei was up 1.02%.
Rand
The rand strengthened on Monday as global risk assets welcomed news that Beijing and Washington may reach a new trade deal later this month. At 17h45, the rand traded at R14.24 against the dollar.
Precious metals
Gold hit its lowest level in over five weeks on Monday amid a strengthened dollar environment while investors sought riskier assets on hopes of a halt in the US-Sino trade spat. At 17h45, spot gold was trading at $1 284.87 an ounce.
Oil
Oil prices pushed higher on Monday boosted by Opec output reductions and news that the US and China are nearing the end of their year-long trade dispute that has slowed global economic growth. At 17h30, a barrel of Brent crude was trading at $66.06.
Despite a choppy day of trade on the local markets, news that the US and China are close to ending their prolonged trade dispute boosted global risk assets on Monday, with the local bourse pushing higher in the afternoon following a stellar performance by Naspers. At market close, the All Share was 0.02% higher.
United States
US shares traded higher on Monday boosted by optimism that Beijing and Washington would reach a trade agreement as soon as this month to halt steep tariffs on billions of dollars’ worth of both Chinese and American goods. At close of trade, the NASDAQ was 0.84% higher.
Europe
Stock markets cheered reports that two of the world’s biggest economies might reach a trade deal later this month, with European markets tracking their Asian counterparts into positive territory. The pan-European STOXX 600 index closed up 0.43%.
Hong Kong
Hong Kong shares reached their highest level in over eight months as Washington and Beijing were said to be nearing a deal to end their prolonged trade war. The Hang Seng ended the day 0.54% higher.
Japan
The Nikkei peaked at a new three-month high on Monday following a global rally in shares as reports surfaced that a trade deal to end a lengthy trade dispute between the US and China is within reach. At market close, the Nikkei was up 1.02%.
Rand
The rand strengthened on Monday as global risk assets welcomed news that Beijing and Washington may reach a new trade deal later this month. At 17h45, the rand traded at R14.24 against the dollar.
Precious metals
Gold hit its lowest level in over five weeks on Monday amid a strengthened dollar environment while investors sought riskier assets on hopes of a halt in the US-Sino trade spat. At 17h45, spot gold was trading at $1 284.87 an ounce.
Oil
Oil prices pushed higher on Monday boosted by Opec output reductions and news that the US and China are nearing the end of their year-long trade dispute that has slowed global economic growth. At 17h30, a barrel of Brent crude was trading at $66.06.
Our daily rant..
A relatively quiet day on the market with not much happening. Today however sees the release of South Africa's latest GDP, 4th quarter 2018 numbers, and the consensus is for growth to be between 1.1% and 1.2% quarter on quarter annualised and seasonally adjusted. Keep an eye on our South Africa GDP page for the latest GDP numbers. Our worry is the increased tax burden as announced during the budget speech which will have an impact on South African consumers ability to spend, think increased fuel levy and road accident fund levy as well as increased sin taxes.
As we saw yesterday that Distell, the maker of Amarula, Klipdrift and Savanna showed volumes decline in the second half of 2018, and this will probably continue in 2019 thanks to all the added taxes imposed on citizens. And it not only affects citizens but also companies operating in South Africa. For more on Distell's financial results read here.
As we saw yesterday that Distell, the maker of Amarula, Klipdrift and Savanna showed volumes decline in the second half of 2018, and this will probably continue in 2019 thanks to all the added taxes imposed on citizens. And it not only affects citizens but also companies operating in South Africa. For more on Distell's financial results read 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.
So the first trading two trading days of March 2019 ended on a positive note. And so far for 2019 ever month the JSE All Share Index has ended in the green. But when looking at the returns of the All Share in Dollar terms South African investors are losing out against the rest of the world. Recent Rand weakness not helping the local investors returns in dollar terms.