Traders Corner

on . Posted in News Flash

US markets had another strong performance last night, with the NASDAQ ending at a 14-year high. Asian markets are trading mixed this morning, with the share price of BHP Billiton trading 1.35% higher ahead of FY results that should be released today. The Rand was last at R10.61/$, with gold last at $1300 an ounce. World futures are trading +0.25%

Key macro events:

    • UK: CPI
    • ECB: Current Account
    • Japan: Leading Index
    • US: CPI
  • US: Housing starts

Tradewise Report

on . Posted in Investment general

The Nikkei Index edged higher in volatile trading on Wednesday with geopolitical concerns still weighing on risk-appetite, while investors were also cautious on the back of economic news that showed that Japan's economy suffered its biggest contraction in three years.

The Hang Seng Index slipped lower on Wednesday and reversed earlier gains after the central bank released data showing Chinese banks lent far less money than expected in July, while money supply growth eased.

According to Reuters, European markets are expected to open mixed on Wednesday on the back of weak economic figures out of Asia this morning, while the continuing crisis in Ukraine could spoil Europe's shaky economic recovery.

Reuters reports that U.S. markets slipped into the red but on low trading volumes on Tuesday, reversing two-days of gains as energy shares such as Southwestern Energy and Consol Energy lost 2.8% and 2.4%, respectively on falling oil prices.

Business Day reports that the JSE All Share Index closed lower on Tuesday, with local mining shares the biggest losers on the day, while the local bourse also reacted negatively to the European Economic Research or ZEW indicator which showed that growth expectations for Germany, Europe’s largest economy, worsened for the eighth straight month in August.

The Rand was last trading at R10.6341 against the US Dollar, with the Euro also quoted firmer at R14,2100 and the British Pound at R17.8413.

The gold price traded above the $1,300 an ounce level in Singapore on Wednesday on the back of fears over the economic impact on Europe due to the crisis in Ukraine. Gold was last trading at $1,309.85, with the platinum price quoted at $1,462.85, while the palladium price has jumped to the $873.58 level.

Brent was last trading lower at $102.58 a barrel.

Traders Corner

on . Posted in News Flash

Slightly lower closes from US markets overnight should keep us subdued once again on the local front, with Asian markets trading mostly lower this morning. Tencent is due to report Q2 numbers this morning after the Hong Kong market’s close, while the stock is currently trading 1.3% lower. The Rand was last at R10.63/$ with gold at $1,309 an ounce. World futures are trading +0.2%.

Key macro events:

    • SA: Retail sales Y/Y – expected: 2%
    • US: MBA Mortgage applications
    • US: Retail sales
  • US: Business inventories

Tradewise Report

on . Posted in Investment general

The Nikkei share average edged up slightly on Tuesday to extended its recovery from a two-month low, with investors buying into the shares of steelmakers and shipping companies but remaining wary as the conflicts in Ukraine and the Middle East could stifle world economic growth.

The Hang Seng Index underperformed regional markets with some profit-taking on Chinese financials, while the shares on mainland China also traded lower on Tuesday after yesterday’s strong gains, with investors cautious ahead of more July data which will provide more direction on how well the Chinese economy was recovering.

According to Reuters, European markets are expected to open slightly lower on Tuesday, having reversed a sharp two-week decline on Monday on the back of easing tensions between Ukraine and Russia.

Reuters reports that U.S. markets edged higher on Monday with eight of the S&P's 10 primary sector indices extending the rally from Friday, as investors became more positive about the geopolitical situation between Russia and Ukraine after Russia decided to send humanitarian aid to Ukraine.

Business Day reports that the JSE All Share Index closed higher on Monday on the back of strong gains on global equity markets as the spotlight switched from traditional safe-havens such as gold and US treasury bonds as jitters slowly subsided over conflict between Russia and Ukraine, while the situation in the Middle East also abated.

The Rand weakened slightly against the U.S. Dollar yesterday and was last trading at R10.6580 against the US Dollar, with the Euro quoted firmer at R14.2480 and the British Pound at R17.8279.

The gold price traded in a narrow range above the $1,300 an ounce level in Singapore on Tuesday as equity markets climbed higher, with easing geopolitical worries concerning Ukraine taking the spotlight off the safe-haven asset. Gold was last trading at $1,307.27, with the platinum price quoted at $1,462.45, while the palladium price has jumped to the $869.60 level.

Brent was last trading lower at $104.40 a barrel.