|
Related Topics |
|
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.
|
|
Short summary of PSG's market commentary for 5 November 2019
South Africa
The JSE closed higher on Monday as investors digested a Moody’s reprieve and talks of Washington and Beijing possibly signing a trade deal later this month. At the closing bell, the JSE All Share gained 0.49%.
United States
Wall Street’s main indices surged on Monday thanks to a stellar performance by energy and technology stocks on the back of optimism over a possible trade deal between the US and China. Shortly after the JSE closed, the Dow was up by 0.41% while the S&P 500 and the Nasdaq gained 0.46% and 0.65% respectively.
Europe
Tariff-exposed European miners boosted the pan-European STOXX 600 index on Monday following reports of a possible trade deal that could be ratified as early as this month. Shortly after the JSE closed, France’s CAC 40 index gained 1.08% while Germany’s DAX rose by 1.35%.
Hong Kong
Optimism over a partial deal that could halt the infamous trade dispute between Washington and Beijing lifted the Hong Kong stock market to a 3-month high on Monday. The Hang Seng closed 1.65% in the green.
Japan
Japanese markets were closed for a public holiday on Monday.
Rand
The rand strengthened against the dollar on Monday as investors welcomed the time given to government to get its house in order before the February 2020 budget speech. At 21h50, a dollar traded at R14.79.
Precious metals
Gold prices fell on Monday as investors cheered fading slowing growth concerns following positive jobs data from the US and the prospect of a trade deal between two of the world’s largest economies. An ounce of spot gold traded at $1 507.39 at 21h55.
Oil
An improved outlook for crude demand boosted the price of oil on Monday after improved US jobs growth data lessened apprehensions over slowing global growth. At 22h00, a barrel of Brent crude traded at $62.65.
The JSE closed higher on Monday as investors digested a Moody’s reprieve and talks of Washington and Beijing possibly signing a trade deal later this month. At the closing bell, the JSE All Share gained 0.49%.
United States
Wall Street’s main indices surged on Monday thanks to a stellar performance by energy and technology stocks on the back of optimism over a possible trade deal between the US and China. Shortly after the JSE closed, the Dow was up by 0.41% while the S&P 500 and the Nasdaq gained 0.46% and 0.65% respectively.
Europe
Tariff-exposed European miners boosted the pan-European STOXX 600 index on Monday following reports of a possible trade deal that could be ratified as early as this month. Shortly after the JSE closed, France’s CAC 40 index gained 1.08% while Germany’s DAX rose by 1.35%.
Hong Kong
Optimism over a partial deal that could halt the infamous trade dispute between Washington and Beijing lifted the Hong Kong stock market to a 3-month high on Monday. The Hang Seng closed 1.65% in the green.
Japan
Japanese markets were closed for a public holiday on Monday.
Rand
The rand strengthened against the dollar on Monday as investors welcomed the time given to government to get its house in order before the February 2020 budget speech. At 21h50, a dollar traded at R14.79.
Precious metals
Gold prices fell on Monday as investors cheered fading slowing growth concerns following positive jobs data from the US and the prospect of a trade deal between two of the world’s largest economies. An ounce of spot gold traded at $1 507.39 at 21h55.
Oil
An improved outlook for crude demand boosted the price of oil on Monday after improved US jobs growth data lessened apprehensions over slowing global growth. At 22h00, a barrel of Brent crude traded at $62.65.
Advertisement (and yes South Africans can buy from Amazon as they deliver to SA)
Our daily update
A sign that the South African government is trying to tighten its belt in terms of expenditure is the decline in public sector investments in infrastructure that slowed for the 2nd consecutive year. Below an extract from an article as published by Statistics South Africa.
Public-sector investment in the nation’s infrastructure slowed for a second consecutive year, falling by 8,2% in 2018. This followed a 4,0% decline in 2017. These decreases have seen public-sector capital expenditure slip to a level last seen in 2014. Capital expenditure is money that institutions spend to buy, maintain or upgrade fixed assets such as buildings, vehicles, land and equipment. It is the brick and mortar type of investment that forms the backbone on which the economy functions. Capital investment improves logistics, education, connectivity, facilitates trade and attracts investment. It also allows communities to access a range of services such as water, electricity and sanitation.
South Africa’s 757 public-sector institutions spent R250 billion on fixed assets in 2018. This is lower than the amounts registered in 2017 (R272 billion) and 2016 (R283 billion), according to the recently published Capital expenditure by the public sector report. This is comparable to the capital expenditure of R252 billion in 2014
Read the full article here
Public-sector investment in the nation’s infrastructure slowed for a second consecutive year, falling by 8,2% in 2018. This followed a 4,0% decline in 2017. These decreases have seen public-sector capital expenditure slip to a level last seen in 2014. Capital expenditure is money that institutions spend to buy, maintain or upgrade fixed assets such as buildings, vehicles, land and equipment. It is the brick and mortar type of investment that forms the backbone on which the economy functions. Capital investment improves logistics, education, connectivity, facilitates trade and attracts investment. It also allows communities to access a range of services such as water, electricity and sanitation.
South Africa’s 757 public-sector institutions spent R250 billion on fixed assets in 2018. This is lower than the amounts registered in 2017 (R272 billion) and 2016 (R283 billion), according to the recently published Capital expenditure by the public sector report. This is comparable to the capital expenditure of R252 billion in 2014
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.
So the month of October 2019 saw the JSE All Share Index end in the green. And the first trading day of November 2019 saw the JSE edge up slightly last week Friday. Can the momentum continue and the "Christmas rally" carry the markets higher in the closing months of 2019? So far the first two trading days of November 2019 have both been positive and we can only hope this trend continues.
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
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