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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 9 November 2018
South Africa
South African markets ended Thursday in the red after poor mining, gold and manufacturing production data were released. At close of business, both the All Share and the Top 40 had dropped by over 1%.
United States
Although investors were relieved on Thursday due to the expected US midterm results, they were concerned around the possible outcome of the US Federal Reserve Bank’s (Fed) interest rate decision later in the day.
Europe
Despite strong corporate earnings results, European shares had a rather flat Thursday as investors waited for the Fed’s meeting held later the day. At closed of business, the STOXX 600 and the FTSE 100 were in the green, while the DAX and the CAC 40 were in the red.
Hong Kong
Most Asian markets were pulled up by Wall Street’s strong performance off the back of the US midterm results and China’s three big telecom firms’ strong performance. At 20h00, both the Shanghai and the Hang Seng indexes were up.
Japan
Japanese markets enjoyed the US-midterm-results on Thursday and were boosted by Toshiba’s announcement to sell their overseas energy businesses to buy back their shares. At 20h00, the Nikkei had climbed 1.83%.
Rand
Although investor sentiment towards emerging markets was positive, poor production data released on Thursday knocked the rand down. At 19h30, the rand had fallen with over 1% against major currencies.
Precious metals
While waiting for the Fed’s policy statement on Thursday, the dollar firmed somewhat, which caused a drop in bullion prices. At 19h45, spot gold was down 0.25%, costing $1 223.31 an ounce.
Oil
The oil price took a tumble on Thursday, due to reports showing an increase in US oil production. At 19h35, Brent crude was down 1.46%, costing $70.98 a barrel.
South African markets ended Thursday in the red after poor mining, gold and manufacturing production data were released. At close of business, both the All Share and the Top 40 had dropped by over 1%.
United States
Although investors were relieved on Thursday due to the expected US midterm results, they were concerned around the possible outcome of the US Federal Reserve Bank’s (Fed) interest rate decision later in the day.
Europe
Despite strong corporate earnings results, European shares had a rather flat Thursday as investors waited for the Fed’s meeting held later the day. At closed of business, the STOXX 600 and the FTSE 100 were in the green, while the DAX and the CAC 40 were in the red.
Hong Kong
Most Asian markets were pulled up by Wall Street’s strong performance off the back of the US midterm results and China’s three big telecom firms’ strong performance. At 20h00, both the Shanghai and the Hang Seng indexes were up.
Japan
Japanese markets enjoyed the US-midterm-results on Thursday and were boosted by Toshiba’s announcement to sell their overseas energy businesses to buy back their shares. At 20h00, the Nikkei had climbed 1.83%.
Rand
Although investor sentiment towards emerging markets was positive, poor production data released on Thursday knocked the rand down. At 19h30, the rand had fallen with over 1% against major currencies.
Precious metals
While waiting for the Fed’s policy statement on Thursday, the dollar firmed somewhat, which caused a drop in bullion prices. At 19h45, spot gold was down 0.25%, costing $1 223.31 an ounce.
Oil
The oil price took a tumble on Thursday, due to reports showing an increase in US oil production. At 19h35, Brent crude was down 1.46%, costing $70.98 a barrel.
Our daily rant..
Yesterday Statistics South Africa announced that gold mining production declined by 19% compared to the same time last year. While total mining production of all commodity types in South Africa declined by 1.8% for September 2018 compared to September 2017. While the mining industry is punted as a job creator in South Africa's economy, the output produced by the sector is declining, while the gold mining sector in South Africa is dying. Question is what is South Africa going to do about all the gold miners that will eventually be retrenched in South Africa. Are they being trained to do other things? Or will their sole skill be gold mining, which means they will be unemployable in other industries and will join the already excessively high 27.5% of those looking to work but cannot find work. Succession planning for these miners needs to be put in place, but we cant see this happening while the mines chase profits and the ruling party chasing their own tail.