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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 8 November 2019
South Africa
The JSE lost momentum and ended lower on Thursday after the release of data which pointed to a decline in local business confidence and manufacturing production. At the closing bell, the JSE All Share lost 0.29%.
United States
Wall Street indices hit record highs on Thursday after the US agreed to gradually reverse some of its trade tariffs on Chinese imports. Shortly after the JSE closed, the Nasdaq went up by 0.69%
.
Europe
European markets logged gains on Thursday on the back of positive earnings reports from market heavyweights while investors cheered trade talk progress. Shortly after the JSE closed, the FTSE 100 gained 0.24%.
Hong Kong
Hong Kong stocks traded higher on Thursday after news broke that Washington had reached a deal with Beijing to cancel trade tariffs that were imposed at the peak of their trade war. The Hang Seng closed 0.57% in the green.
Japan
Although concerns over the vague details of a tariff-reversal deal between the US and China trimmed gains, Japanese stocks hit one-year highs on Thursday. At 18h15, the Nikkei recorded a 0.11% gain.
Rand
Notwithstanding a decline in local business confidence and manufacturing production, the rand strengthened against the dollar on Thursday on the back of trade deal optimism. At 18h30, a dollar traded at R14.77.
Precious metals
Gold prices slipped on Thursday as signs of progress in the US-Sino trade talks lifted risk appetite among investors after Washington agreed to lift trade tariffs on Chinese imports. An ounce of spot gold traded at $1 472.32 at 18h30.
Oil
Oil prices fell on Thursday after hope of a trade deal was revived by reports that Washington had conceded to lift trade tariffs on Chinese goods. At 18h45 a barrel of Brent crude was down 1.08% and traded at $62.76.
The JSE lost momentum and ended lower on Thursday after the release of data which pointed to a decline in local business confidence and manufacturing production. At the closing bell, the JSE All Share lost 0.29%.
United States
Wall Street indices hit record highs on Thursday after the US agreed to gradually reverse some of its trade tariffs on Chinese imports. Shortly after the JSE closed, the Nasdaq went up by 0.69%
.
Europe
European markets logged gains on Thursday on the back of positive earnings reports from market heavyweights while investors cheered trade talk progress. Shortly after the JSE closed, the FTSE 100 gained 0.24%.
Hong Kong
Hong Kong stocks traded higher on Thursday after news broke that Washington had reached a deal with Beijing to cancel trade tariffs that were imposed at the peak of their trade war. The Hang Seng closed 0.57% in the green.
Japan
Although concerns over the vague details of a tariff-reversal deal between the US and China trimmed gains, Japanese stocks hit one-year highs on Thursday. At 18h15, the Nikkei recorded a 0.11% gain.
Rand
Notwithstanding a decline in local business confidence and manufacturing production, the rand strengthened against the dollar on Thursday on the back of trade deal optimism. At 18h30, a dollar traded at R14.77.
Precious metals
Gold prices slipped on Thursday as signs of progress in the US-Sino trade talks lifted risk appetite among investors after Washington agreed to lift trade tariffs on Chinese imports. An ounce of spot gold traded at $1 472.32 at 18h30.
Oil
Oil prices fell on Thursday after hope of a trade deal was revived by reports that Washington had conceded to lift trade tariffs on Chinese goods. At 18h45 a barrel of Brent crude was down 1.08% and traded at $62.76.
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Our daily update
Yesterday we covered the latest manufacturing under-utilization of available production capacity. Below a short extract of that article.
The last time South African used so little of available manufacturing capacity was 4 years ago. And looking at the main reasons as to why South African manufacturers are not producing at full capacity. the 19.7% under utilization can be ascribed to the following reasons according to Statistics South Africa.
So it is pretty clear that the main reason our manufacturing industry is not producing at full capacity is due to insufficient demand. This might be due to a weak economy or due to increased imports which reduces the need for manufacturing in South Africa
Read the full article here
The last time South African used so little of available manufacturing capacity was 4 years ago. And looking at the main reasons as to why South African manufacturers are not producing at full capacity. the 19.7% under utilization can be ascribed to the following reasons according to Statistics South Africa.
- Reason for under-utilisation: Insufficient demand: 12.4%
- Reason for under-utilisation: Other reasons: 3.6%
- Reason for under-utilisation: Raw materials 2.5%
- Reason for under-utilisation: Skilled labour: 1%
- Reason for under-utilisation: Semi- and unskilled labour: 0.2%
- Total Under-utilisation: 19.7%
So it is pretty clear that the main reason our manufacturing industry is not producing at full capacity is due to insufficient demand. This might be due to a weak economy or due to increased imports which reduces the need for manufacturing in South Africa
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 for the month of November 2019 the JSE All Share Index us up by 1.87%. There are rumors that trade tariffs that has been imposed by the USA and China in their trade will begin to be rolled back. Lets see if this drives markets higher.
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