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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 6 November 2018
South Africa
Despite further US-China trade war threats and cautious global markets, the local bourse had a great start to the week. At the close of business, the All Share was 1.19% in the green and the Top 40 up by 1.24%.
United States
While US markets were waiting for the outcome of the midterm elections on Monday, the Nasdaq opened in the red as a result of Apple’s over -2% share price drop. At 21h30, the Nasdaq was down 0.40%.
Europe
European markets were mainly flat on Monday due to a faster pace in US interest rate hikes and the looming conflict between the US and China. At 21h00, the pan-European STOXX 600 was down 0.16%.
Hong Kong
On Monday, investors moved away from uncertain assets in anticipation of the US midterm elections and the ever-present trade war between the US and China. The Hang Seng ended the day with a 2.30% loss.
Japan
Japanese markets ended Monday in the red as Fast Retailing released disappointing sales data and a US-Sino trade agreement seemed to have failed. At 21h10, the Nikkei had dropped 1.63%.
Rand
While investors paid cautious attention to the US midterm elections to be held later on Monday, the rand rallied against major currencies in the late afternoon. At 21h35, the rand traded at R14.15 against the dollar, R18.46 against the pound and R16.16 against the euro.
Precious metals
Investors adopted a 'wait-and-see approach' on Monday ahead of the US midterm elections. At 21h00, spot gold was down to $1 230.88 an ounce.
Oil
On Monday, US President Donald Trump was reported to saying: “We have the toughest sanctions ever imposed, but on oil we want to go a little bit slower because I don’t want to drive (up) the oil prices in the world.” At 21h20, benchmark Brent crude was trading at $73.51 a barrel
Despite further US-China trade war threats and cautious global markets, the local bourse had a great start to the week. At the close of business, the All Share was 1.19% in the green and the Top 40 up by 1.24%.
United States
While US markets were waiting for the outcome of the midterm elections on Monday, the Nasdaq opened in the red as a result of Apple’s over -2% share price drop. At 21h30, the Nasdaq was down 0.40%.
Europe
European markets were mainly flat on Monday due to a faster pace in US interest rate hikes and the looming conflict between the US and China. At 21h00, the pan-European STOXX 600 was down 0.16%.
Hong Kong
On Monday, investors moved away from uncertain assets in anticipation of the US midterm elections and the ever-present trade war between the US and China. The Hang Seng ended the day with a 2.30% loss.
Japan
Japanese markets ended Monday in the red as Fast Retailing released disappointing sales data and a US-Sino trade agreement seemed to have failed. At 21h10, the Nikkei had dropped 1.63%.
Rand
While investors paid cautious attention to the US midterm elections to be held later on Monday, the rand rallied against major currencies in the late afternoon. At 21h35, the rand traded at R14.15 against the dollar, R18.46 against the pound and R16.16 against the euro.
Precious metals
Investors adopted a 'wait-and-see approach' on Monday ahead of the US midterm elections. At 21h00, spot gold was down to $1 230.88 an ounce.
Oil
On Monday, US President Donald Trump was reported to saying: “We have the toughest sanctions ever imposed, but on oil we want to go a little bit slower because I don’t want to drive (up) the oil prices in the world.” At 21h20, benchmark Brent crude was trading at $73.51 a barrel
Our daily rant..
Yesterday we took a look at the manufacturing under-utilisation numbers as published by Statistics South Africa. Concerning was the fact that South African factories and manufacturers are running at 81% of full capacity and the main reason given for why its not running at full capacity was "lack of demand". Essentially the South African economy is not growing and there is no real new demand for manufactured goods. While part of it is due to lack luster economic conditions, another reason for this is the fact that South African firms are importing more manufactured goods instead of sourcing it locally. And this hurts the local manufacturing industry that is already in a world of pain. The manufacturing of textiles for example was running at only 2 thirds of its actual capacity, as SA import more and more textiles from Asian countries such as China, Thailand and Vietnam. Government needs to get with the program and provide incentives to companies who source and use local goods and locally manufactured goods.