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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 6 November 2019
South Africa
The JSE All Share continued its winning streak on Tuesday amid global risk-on sentiment after US officials said a preliminary trade deal was on the cards. At the closing bell, the JSE All Share gained 0.56%.
United States
Wall Street’s main indices surged on Tuesday on hopes of a partial trade truce between Washington and Beijing. Shortly after the JSE closed, the Dow was up by 0.17% while the Nasdaq gained 0.15%.
Europe
An upsurge in energy stocks boosted European markets on Tuesday as investors cheered the prospect of a trade deal that could be signed before the end of the month. Shortly after the JSE closed, France’s CAC 40 index gained 0.39% while Germany’s DAX rose by 0.09%.
Hong Kong
Hong Kong stocks made solid gains on Tuesday as investors held onto the prospect of more stimulus measures from the central bank to boost slowing growth. The Hang Seng closed 0.49% in the green.
Japan
Japan’s benchmark Nikkei share average climbed 1.74% to a 13-month high on Tuesday after a long weekend, as fresh hopes for a US-China trade deal and upbeat Wall Street stocks lifted investor sentiment.
Rand
Notwithstanding a slip in consumer confidence, the local currency maintained its upper hand against the dollar following a Moody’s reprieve. At 19h50, a dollar traded at R14.79.
Precious metals
Gold prices fell on Tuesday as demand for the metal in India and China declined due to multi-year high prices. An ounce of spot gold traded at $1 482.56 at 20h00.
Oil
Oil prices went up on Tuesday as Opec was expected to further trim production in an attempt to offset US fracking output. At 20h15, a barrel of Brent crude was up 0.98% and traded at $61.11.
The JSE All Share continued its winning streak on Tuesday amid global risk-on sentiment after US officials said a preliminary trade deal was on the cards. At the closing bell, the JSE All Share gained 0.56%.
United States
Wall Street’s main indices surged on Tuesday on hopes of a partial trade truce between Washington and Beijing. Shortly after the JSE closed, the Dow was up by 0.17% while the Nasdaq gained 0.15%.
Europe
An upsurge in energy stocks boosted European markets on Tuesday as investors cheered the prospect of a trade deal that could be signed before the end of the month. Shortly after the JSE closed, France’s CAC 40 index gained 0.39% while Germany’s DAX rose by 0.09%.
Hong Kong
Hong Kong stocks made solid gains on Tuesday as investors held onto the prospect of more stimulus measures from the central bank to boost slowing growth. The Hang Seng closed 0.49% in the green.
Japan
Japan’s benchmark Nikkei share average climbed 1.74% to a 13-month high on Tuesday after a long weekend, as fresh hopes for a US-China trade deal and upbeat Wall Street stocks lifted investor sentiment.
Rand
Notwithstanding a slip in consumer confidence, the local currency maintained its upper hand against the dollar following a Moody’s reprieve. At 19h50, a dollar traded at R14.79.
Precious metals
Gold prices fell on Tuesday as demand for the metal in India and China declined due to multi-year high prices. An ounce of spot gold traded at $1 482.56 at 20h00.
Oil
Oil prices went up on Tuesday as Opec was expected to further trim production in an attempt to offset US fracking output. At 20h15, a barrel of Brent crude was up 0.98% and traded at $61.11.
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Our daily update
Yesterday we covered South Africa's latest trade statistics which showed South Africa's exports and imports for September 2019. Below an extract of that article
Lets start off by looking at the value of South Africa's exports and imports for September 2019
So South Africa exported R5.164 billion more in goods than what they imported. While this is good news it is not always the case and when the commodity price cycle turns negative, South Africa's reliance on commodity exports hurts the country as less is fetched for commodities exported so the trade balance numbers should be looked at in that context.
So exports are currently more than South Africa's imports. Great so who did we export to and what did we export to them for the month of September 2019. The summary below shows South Africa's top 5 export destinations for September 2019
Exports Destinations for September 2019:
Read the full article here
Lets start off by looking at the value of South Africa's exports and imports for September 2019
- Exports: R110,439,173,952
- Imports: R105,274,795,794
- Trade Balance: R5,164,378,158
So South Africa exported R5.164 billion more in goods than what they imported. While this is good news it is not always the case and when the commodity price cycle turns negative, South Africa's reliance on commodity exports hurts the country as less is fetched for commodities exported so the trade balance numbers should be looked at in that context.
So exports are currently more than South Africa's imports. Great so who did we export to and what did we export to them for the month of September 2019. The summary below shows South Africa's top 5 export destinations for September 2019
Exports Destinations for September 2019:
- China (11.1%)
- Germany (9.6%)
- United States (6.9%)
- United Kingdom (5.4%)
- Botswana (4.6%)
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