Traders Corner

on . Posted in Uncategorised

Oil falls on growing doubts producers will freeze output

  • The JSE closed firmer on Monday after a negative start, as marginally higher European markets lifted investor sentiment.
  • The rand was firmer against the dollar in the late afternoon trade on Monday as the greenback continued to show weakness against the euro.
  • US stocks ended weaker on Monday, pulling back from a recent rally that took them to new 2016 highs, as losses in commodity-related and industrial shares offset gains in healthcare stocks.
  • European stocks bounced back from one month lows on Monday, led higher by gains in defensive stocks, but telecommunication stocks fell after talks between Orange and Bouygues on creating a dominant French operator collapsed.
  • China stocks rose on Tuesday as a series of government support measures and improving economic data revived investors' appetite for riskier assets, though thin trading volume indicated that confidence remains fragile.
  • Japan's Nikkei share average tumbled to a six-week low on Tuesday morning after the stronger yen hurt the overall market mood, while a drop in Fast Retailing Co weighed after the clothing company reported a poor monthly sales.
  • Gold jumped 1% on Tuesday following a two-day decline, as Asian stocks slid on weak oil prices and mixed views on the outlook for US FederalReserve monetary policy.
  • Oil prices fell on Monday, with Brent touching one-month lows as investors doubted that producers will freeze output to rein in a worldwide glut. 

News Flash

on . Posted in News Flash

According to the Business Day website, the JSE All Share Index lost 1.37% on Monday on the back of a sharp sell-off amongst resources shares such as Kumba, BHP Billiton and Assore, which dropped on lower commodity prices due to a stronger dollar. A much weaker rand did nothing to support the usual rand hedge shares as SAB Miller‚ British American Tobacco and Aspen‚ as they too closed lower.

Tradewise Report

on . Posted in Investment general

The Nikkei Index reached a seven-month high on Wednesday, with exporters gaining on a weaker Yen, while the share prices of brokerage firms also climbed on the back of investor expectations that a cabinet reshuffle by Prime Minister Shinzo Abe will give new energy to his growth-oriented policies.

Shares on mainland China climbed for a fourth straight trading session on Wednesday, boosted by the services purchasing managers' index (PMI) which jumped in August, its strongest showing in 17-months, while the official non-manufacturing PMI also rose, with the Hang Seng Index following suit and scoring its best rise in six weeks.

According to Reuters, European markets are expected to open flat to slightly firmer on Wednesday, with shares trading within a range ahead of the European Central Bank's policy meeting later this week, with investors divided on whether the ECB will reveal more stimulus measures to avoid deflation.

The Reuters website reports that U.S. markets closed mostly lower on Tuesday despite the release of strong manufacturing data, with energy-related shares falling on a stronger US Dollar, as well as softer crude oil prices on the back of slowing demand for oil in China and Europe, while oversupply concerns also dragged Brent crude oil futures to their lowest price since 31 May 2013.

The Business Day website reports that the JSE All Share Index closed firmer on Tuesday with the share price of Firstrand rallying on the back of a well-received trading statement with its earnings rising by 22%, while diversified mining shares were also in demand despite a stronger US Dollar that pushed commodity prices lower.

The Rand was last trading weaker at R10.7209 against the US Dollar, with the Euro quoted at R14.0874, but the British Pound was quoted firmer at R17.6356.

The gold price traded near its lowest level in two-and-a-half months in Singapore on Wednesday, struggling to recover from steep overnight losses on the back of a stronger US Dollar, as well as robust U.S. economic data. Gold was last trading lower at $1,268.30, with the platinum price at $1,407.25, while the palladium price was last trading at the $882.00 level.

Brent was last trading much lower at $100.78 a barrel.

Traders Corner

on . Posted in News Flash

US markets saw mixed closes last night with only the NASDAQ adding 4-tenths of a percent, while both the Dow & S&P closed lower. Asian markets are trading stronger this morning, except for the ASX200, with Tencent currently 2% higher. The Rand is near yesterday’s closing levels at R10.73/$, with gold last quoted at $1,268 an ounce. World futures are trading 0.25% higher

Key macro events:

•             Eurozone: Retail Sales

•             Eurozone: GDP

•             China: Non-manufacturing PMI

•             Australia: GDP

•             US MBA Mortgage applications

•             US ISM New York

•             US Factory orders

•             US Beige book

•             US Total vehicle sales