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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 5 September 2019
South Africa
The JSE closed higher on Wednesday, following global markets as positive Chinese data was released, while Hong Kong withdrew its controversial extradition bill. The JSE All Share rose 0.30%.
United States
US stocks opened higher on Wednesday as encouraging data from China allayed concerns of slowing global growth, with sentiment getting a boost on signs of easing tensions in Hong Kong following the withdrawal of a controversial bill. Shortly after the JSE closed, the Dow added 0.70%.
Europe
British Prime Minister Boris Johnson was outvoted in parliament on Tuesday night in a bid by MPs to avoid a no-deal Brexit. In response, Johnson said he would push for an early general election. Shortly after the JSE closed, the FTSE 100 was up 0.44%, France's CAC 40 rose to 1.12% and Germany's DAX 30 ended 0.85% in the green.
Hong Kong
Data showed on Wednesday that China's Caixan services purchasing managers' index rose to a three-month high of 52.1 points yesterday. The Hang Seng jumped ahead of the government's formal withdrawal of the proposed extradition bill that sparked three months of protests in the former British colony.
Japan
Japan’s Nikkei struggled for direction on Wednesday and the broader Topix dipped after weak US economic data stoked fears of a global recession. The benchmark Nikkei ended up 0.12%.
Rand
The rand broke below R15/$ on Wednesday, as markets reacted to better-than-expected second quarter GDP released on Tuesday and positive news from Asia. At 20h30, a dollar traded at R14.81.
Precious metals
Gold dipped on Wednesday as political risks in Europe and Asia receded, but concerns over the global economy and the China-US trade war kept bullion close to a six-year peak. An ounce of gold traded at $1 553.92 at close of trade.
Oil
Oil prices rose slightly on Wednesday, boosted by a wider market pick-up on positive news from China’s services sector. A barrel of Brent crude traded at $61.30 at 20h30
The JSE closed higher on Wednesday, following global markets as positive Chinese data was released, while Hong Kong withdrew its controversial extradition bill. The JSE All Share rose 0.30%.
United States
US stocks opened higher on Wednesday as encouraging data from China allayed concerns of slowing global growth, with sentiment getting a boost on signs of easing tensions in Hong Kong following the withdrawal of a controversial bill. Shortly after the JSE closed, the Dow added 0.70%.
Europe
British Prime Minister Boris Johnson was outvoted in parliament on Tuesday night in a bid by MPs to avoid a no-deal Brexit. In response, Johnson said he would push for an early general election. Shortly after the JSE closed, the FTSE 100 was up 0.44%, France's CAC 40 rose to 1.12% and Germany's DAX 30 ended 0.85% in the green.
Hong Kong
Data showed on Wednesday that China's Caixan services purchasing managers' index rose to a three-month high of 52.1 points yesterday. The Hang Seng jumped ahead of the government's formal withdrawal of the proposed extradition bill that sparked three months of protests in the former British colony.
Japan
Japan’s Nikkei struggled for direction on Wednesday and the broader Topix dipped after weak US economic data stoked fears of a global recession. The benchmark Nikkei ended up 0.12%.
Rand
The rand broke below R15/$ on Wednesday, as markets reacted to better-than-expected second quarter GDP released on Tuesday and positive news from Asia. At 20h30, a dollar traded at R14.81.
Precious metals
Gold dipped on Wednesday as political risks in Europe and Asia receded, but concerns over the global economy and the China-US trade war kept bullion close to a six-year peak. An ounce of gold traded at $1 553.92 at close of trade.
Oil
Oil prices rose slightly on Wednesday, boosted by a wider market pick-up on positive news from China’s services sector. A barrel of Brent crude traded at $61.30 at 20h30
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Our daily update
So ever wondered what McDonalds shares are worth? Well our sister website covered Mcdonalds 2nd quarter earnings report for 2019 and valued the stock at $198 a share. A short extract of that article follows.
So based on Mcdonald's latest earnings report, what is our target price for Mcdonalds? And the question is given its strong stock price run in recent months and years is there still value in the company's stock price? We value the group's stock at $198 a share. We therefore believe from a fundamental investing and value perspective the stock price of Mcdonald's is overvalued and we would not recommend buying into the stock at its current price, but rather at levels about 10% below our target price. So we would suggest looking to buy Mcdonalds at close to $180 a share
Read the full article here
So based on Mcdonald's latest earnings report, what is our target price for Mcdonalds? And the question is given its strong stock price run in recent months and years is there still value in the company's stock price? We value the group's stock at $198 a share. We therefore believe from a fundamental investing and value perspective the stock price of Mcdonald's is overvalued and we would not recommend buying into the stock at its current price, but rather at levels about 10% below our target price. So we would suggest looking to buy Mcdonalds at close to $180 a share
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.
For the month of September 2019 so far the JSE All Share Index is down -0.64% 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
For the month of September 2019 so far the JSE All Share Index is down -0.64% 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