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PSG daily investment update 7 May 2019
Date: 7 May 2019 Category: Stock Market |
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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 7 May 2019
South Africa
The JSE suffered losses on Monday as risk-aversion underpinned most of the day following US President Donald Trump’s vow to hike tariffs on Chinese goods by the end of this week if the two states fail to reach a trade agreement. Shortly after the closing bell, the All Share plunged 1.05%.
United States
Trump’s unexpected threat to increase tariffs on Chinese goods shook US markets on Monday, fuelling concerns of a global slowdown. Shortly after the JSE closed, the Dow lost 0.51%.
Europe
Investors discarded riskier assets as European share prices dropped significantly on Monday after Trump intensified trade tensions between the world’s largest economies by threatening to impose higher tariffs on Chinese goods. Shortly after the JSE closed, the pan-European Stoxx 600 lost 0.88%.
Hong Kong
Shares in Hong Kong fell sharply, and market participants opted to sell the yuan on Monday as the US-China trade war escalated. The Hang Seng ended the day 2.90% in the red.
Japan
Markets were closed due to a public holiday.
Rand
The rand struggled for direction on Monday as investors kept a close eye on the US-China trade war and tomorrow’s general elections. At 20h00 on Monday, the rand traded at R14.46 against the dollar.
Precious metals
Gold prices surged on Monday as investors were forced to sell riskier assets, boosting the appeal of safe-haven assets such as bullion after Trump vowed to increase tariffs on Chinese goods. At 20h00 on Monday, spot gold was up trading at $1 281.56 an ounce.
Oil
Oil markets relished the opportunity presented by an escalating trade war between two of the world’s biggest economies on Monday after Trump promised to hike tariffs on Chinese products by the end of the week. Shortly after the JSE closed, a barrel of Brent crude was trading at $71.91
The JSE suffered losses on Monday as risk-aversion underpinned most of the day following US President Donald Trump’s vow to hike tariffs on Chinese goods by the end of this week if the two states fail to reach a trade agreement. Shortly after the closing bell, the All Share plunged 1.05%.
United States
Trump’s unexpected threat to increase tariffs on Chinese goods shook US markets on Monday, fuelling concerns of a global slowdown. Shortly after the JSE closed, the Dow lost 0.51%.
Europe
Investors discarded riskier assets as European share prices dropped significantly on Monday after Trump intensified trade tensions between the world’s largest economies by threatening to impose higher tariffs on Chinese goods. Shortly after the JSE closed, the pan-European Stoxx 600 lost 0.88%.
Hong Kong
Shares in Hong Kong fell sharply, and market participants opted to sell the yuan on Monday as the US-China trade war escalated. The Hang Seng ended the day 2.90% in the red.
Japan
Markets were closed due to a public holiday.
Rand
The rand struggled for direction on Monday as investors kept a close eye on the US-China trade war and tomorrow’s general elections. At 20h00 on Monday, the rand traded at R14.46 against the dollar.
Precious metals
Gold prices surged on Monday as investors were forced to sell riskier assets, boosting the appeal of safe-haven assets such as bullion after Trump vowed to increase tariffs on Chinese goods. At 20h00 on Monday, spot gold was up trading at $1 281.56 an ounce.
Oil
Oil markets relished the opportunity presented by an escalating trade war between two of the world’s biggest economies on Monday after Trump promised to hike tariffs on Chinese products by the end of the week. Shortly after the JSE closed, a barrel of Brent crude was trading at $71.91
Our daily update
Yesterday we covered the latest JSE trading statistics as published by the stock exchange operator. Below a few of the numbers as published by the JSE for the trading week ending 3 May 2019.
Number of trades:
Number of trades (2019): 958 180
Number of trades (2018): 961 486
% change year on year: -0.34%
Volume traded:
Volume traded (2019): 1 094 861 000
Volume of traded (2018): 1 156 306 000
% change year on year: -5.31%
Value of trades:
Value of trades (2019): R68 746 936 000
Value of trades (2018): R88 524 860 000
% change year on year: -22.34%
Read the full article here.
Number of trades:
Number of trades (2019): 958 180
Number of trades (2018): 961 486
% change year on year: -0.34%
Volume traded:
Volume traded (2019): 1 094 861 000
Volume of traded (2018): 1 156 306 000
% change year on year: -5.31%
Value of trades:
Value of trades (2019): R68 746 936 000
Value of trades (2018): R88 524 860 000
% change year on year: -22.34%
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 after 4 consecutive months of positive returns on the JSE All Share Index, the month of May kicked of trading on a positive note. And then Donald Trump stricked threating to raise tariffs on billions worth of goods imported from China. Yesterday saw a big negative trading day on the JSE. 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
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