Traders Corner

on . Posted in News Flash

US markets gave back early gains yesterday after President Barack Obama ordered air strikes in northern Iraq. Across the board, losses of half a percent were recorded, with world futures trading between 0.5% - 0.7% lower this morning. The Rand tumbled overnight to R10.79/$, while the gold price is trading higher at $1,318 an ounce.

Key macro events:

  • US Wholesale trade

 

Tradewise Report

on . Posted in Investment general

The Nikkei Index fell to a 2½-week low on Wednesday following a 4.8% decline in index heavy-weight SoftBank Corp, after its U.S. subsidiary Sprint Corp dumped its attempt to acquire T-Mobile U.S. Inc.

The Hang Seng Index dropped lower on Wednesday on some profit taking on Chinese blue-chip stocks, with some traders saying that a market correction was due after the recent heavy gains, while investors were also mindful of the declines on U.S. markets.

According to Reuters, European markets are expected to open lower on Wednesday, tracking the lower close on Wall Street overnight, as well as on Asian markets this morning, as the situation in Ukraine deteriorates and prompts investors to become risk averse.

Reuters reports that US markets slipped lower on Tuesday with all 10 S&P 500 sectors ending in the red, as concerns increased over reports that Russian troops were massing near the Ukraine border, while good news is now considered as bad news out of the US‚as investors expect that the Fed would be closer to tightening interest rates.

Business Day reports that the JSE All Share Index closed higher on Tuesday‚on the back of a weaker Rand which fell after another round of upbeat US data bolstered the demand for the US Dollar and boosted Rand-hedge shares such as British American Tobacco.

The Rand is trading weaker at R10.7903 against the US Dollar, with the Euro quoted at R14.4138 and the British Pound at R18.1672.

The gold price edged slightly higher in Singapore on Wednesday on the back of market risk aversion as increasing military action along the Ukraine border added pressure to global equity markets. Gold was last trading at $1,291.50, with the platinum price quoted at $1,456.70, while the palladium price has slipped to $844.83.

Brent was last trading lower at $104.81 a barrel.

Traders Corner

on . Posted in News Flash

We expect a reversal today following weak US markets and Asia also struggling this morning. Tencent is taking a bit of a breather with miners trading higher in Australia, while the Rand is slightly weaker at R10.77/$ and gold at $1291 an ounce. FTSE futures are pointing 0.4% lower.

Key macro events today:

    • US: MBA Mortgage applications
  • US: Trade balance

Tradewise Report

on . Posted in Investment general

The Nikkei Index ended lower on Monday, slipping to a one-week low in volatile trade, tracking losses on Wall Street, while the continuing conflict in Gaza, as well as the Ukraine drained investor risk appetite.

The Hang Seng Index traded higher on Monday, despite the weak performance from the property developer sector, while shares on mainland China gained on positive market comments from the Chinese Securities Regulatory Commission (CSRC), who ascribed the recent stock market to an improving economy, more liquidity, and market reforms.

According to Reuters, European markets are expected to open slightly higher on Monday, recovering from last week's declines, although the advance may be capped on worries over the health of the Euro zone banking sector despite Portugal agreeing to spend $6.58-billion to rescue its largest listed bank.

Reuters reports that shares on Wall Street closed lower for a second straight day on Friday with seven of the 10 S&P 500 sectors ending in the red to push the benchmark index to its biggest weekly decline since 2012 on the back of the Argentinian default, while data showing U.S. job growth came in below market expectations also weighed on sentiment.

Business Day reports that the JSE All Share Index ended in negative territory on Friday with resources and platinum mining shares leading the decline, after Asian and European markets dropped on the back of concern of further emerging market contagion following Argentina’s default on its debt.

The Rand is trading firmer at R10.6751 against the US Dollar, with the Euro quoted at R14.3268 and the British Pound at R17.9363.

The gold price found good support above $1,290 an ounce level on Monday as weak U.S. jobs data and softer equity markets encouraged some safe-haven buying. Gold was last trading at $1,293.40, with the platinum price quoted at $1,460.25, while the palladium price has slipped to $863.25.

Brent was last trading slightly lower at $105.05 a barrel.