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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 7 October 2019
South Africa
The JSE ended higher on Friday but was on track for a third weekly drop following the release of poor economic data. At the closing bell, the JSE All Share gained 0.50%.
United States
Wall Street indices rose on Friday following the release of nonfarm payroll data that pointed to moderate jobs growth in September. At 19h30 on Sunday, the S&P 500 and Nasdaq gained 1.42% and 1.40% respectively.
Europe
European markets surged on Friday as data showing moderate jobs growth in the US eased fears of a global recession. Shortly after the JSE closed, France’s CAC 40 gained 0.38%.
Hong Kong
Hong Kong stocks dropped on Friday as investors continued to digest Washington’s latest threat to impose tariffs on over $7 billion worth of European Union imports. The Hang Seng ended 1.09% lower.
Japan
Notwithstanding a poor performance by financials, Japanese stocks remained steady as investors sought new catalysts from US jobs data on Friday. At 20h00 on Sunday, the Nikkei had gained 0.32%.
Rand
The rand made solid gains on Friday and was set for a weekly gain as investors unravelled the ANC's latest strategy to boost the domestic economy. At 20h15 on Sunday, a dollar traded at R15.04.
Precious metals
Gold prices went up for a fourth consecutive session on Friday after positive US jobs growth data boosted investors’ appetite for the safe-haven metal. An ounce of spot gold traded at $1 504.76 at 20h15 on Sunday.
Oil
The price of oil rose on Friday but was set for a weekly decline as investors feared that slowing global growth might impact energy demand. At 20h30 on Sunday, a barrel of Brent crude traded at $59.03.
The JSE ended higher on Friday but was on track for a third weekly drop following the release of poor economic data. At the closing bell, the JSE All Share gained 0.50%.
United States
Wall Street indices rose on Friday following the release of nonfarm payroll data that pointed to moderate jobs growth in September. At 19h30 on Sunday, the S&P 500 and Nasdaq gained 1.42% and 1.40% respectively.
Europe
European markets surged on Friday as data showing moderate jobs growth in the US eased fears of a global recession. Shortly after the JSE closed, France’s CAC 40 gained 0.38%.
Hong Kong
Hong Kong stocks dropped on Friday as investors continued to digest Washington’s latest threat to impose tariffs on over $7 billion worth of European Union imports. The Hang Seng ended 1.09% lower.
Japan
Notwithstanding a poor performance by financials, Japanese stocks remained steady as investors sought new catalysts from US jobs data on Friday. At 20h00 on Sunday, the Nikkei had gained 0.32%.
Rand
The rand made solid gains on Friday and was set for a weekly gain as investors unravelled the ANC's latest strategy to boost the domestic economy. At 20h15 on Sunday, a dollar traded at R15.04.
Precious metals
Gold prices went up for a fourth consecutive session on Friday after positive US jobs growth data boosted investors’ appetite for the safe-haven metal. An ounce of spot gold traded at $1 504.76 at 20h15 on Sunday.
Oil
The price of oil rose on Friday but was set for a weekly decline as investors feared that slowing global growth might impact energy demand. At 20h30 on Sunday, a barrel of Brent crude traded at $59.03.
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Our daily update
On Friday we covered the latest Peregrine Weekly Market wrap. Below a short extract
Rand stronger ... for now
Much of the same is to be expected in the coming week, with more signs of a slowing economy being recognised through economic data releases. For now, patience is key as the greater market slowly reaches a point where conviction needs to be more understandable and directional. After being largely dictated by the US dollar’s rapid strengthening this week, the rand saw some relief on Thursday as the US released weaker-than-expected non-manufacturing data. After flying through two general trading ranges, the rand pulled back into the R15.09 to R15.25 range against the USD. Although the brief relief was well received by the local ZAR, the likelihood of this being long lived is questionable. Risk is currently to the downside (weakness) of the ZAR against major developed market currencies, especially the USD.
The rand started the day trading at R15.13/$, R16.59/€ and R18.67/£.
Read the full article here
Rand stronger ... for now
Much of the same is to be expected in the coming week, with more signs of a slowing economy being recognised through economic data releases. For now, patience is key as the greater market slowly reaches a point where conviction needs to be more understandable and directional. After being largely dictated by the US dollar’s rapid strengthening this week, the rand saw some relief on Thursday as the US released weaker-than-expected non-manufacturing data. After flying through two general trading ranges, the rand pulled back into the R15.09 to R15.25 range against the USD. Although the brief relief was well received by the local ZAR, the likelihood of this being long lived is questionable. Risk is currently to the downside (weakness) of the ZAR against major developed market currencies, especially the USD.
The rand started the day trading at R15.13/$, R16.59/€ and R18.67/£.
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.
So for the month September 2019 the JSE All Share Index ended the month down -2.01%. And October 2019 is of to horrid start with the first trading week of October 2019 looking set to end firmly in the red.
There continues to be concerns about a global economic 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. Added to market worries is the impeachment investigation currently taking place against President Donald Trump due to him asking Ukraine's president to investigate his political rivals, which most believe is a clear abuse of his powers.
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
So for the month September 2019 the JSE All Share Index ended the month down -2.01%. And October 2019 is of to horrid start with the first trading week of October 2019 looking set to end firmly in the red.
There continues to be concerns about a global economic 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. Added to market worries is the impeachment investigation currently taking place against President Donald Trump due to him asking Ukraine's president to investigate his political rivals, which most believe is a clear abuse of his powers.
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