Tradewise Report

on . Posted in Investment general

The Nikkei Index moved to a new three-week high on Wednesday, supported by domestic demand-sensitive sectors, such as real estate and financial shares.

The Hang Seng Index in Hong Kong shares slipped lower on Wednesday, with the shares of China Construction Bank (CCB) falling by 2%, while shares of snack maker Want Want China were affected by large block sales of their shares.

According to Reuters, European markets are expected to edge higher at the open on Wednesday as investors remain cautious after U.S. lawmakers’ gave their support for military action against Syria.

Reuters reports that US markets closed firmer yesterday but ended far off the day’s highs after U.S. President Barack Obama sought authorisation for military strikes against Syria and received support from the Republicans, while stronger-than-expected U.S. manufacturing and construction spending data provided support to the market.

Speculation that the Federal Reserve may cut back on, or taper, its monthly bond purchases as soon as September has made investors nervous.

Business Day reports that the JSE closed firmer on Tuesday with resources shares gaining on firmer commodity prices, while gold mining shares also closed higher despite possible strike action, as a stronger gold price and a softer Rand stimulated demand..

The Rand has edged slightly firmer to trade at R10.2675 against the Dollar, while it is weaker at R13.5313 against the Euro, and at R15.9613 to the Pound.

The price of gold held onto its recent gains due to safe-haven buying on the back of congressional support for a limited military strike against Syria. Gold was last trading at $1 3408.40, with the platinum price quoted at $1530.00, while the palladium price was at $717.00. 

Brent crude oil was last trading higher at $115.60 a barrel.

Trader's Corner

on . Posted in Investment general

  • US stocks rose, as better-than-forecast economic data overshadowed concern over possible military action against Syria.
  • Japanese shares swung between gains and losses as shippers rose after Nomura Holdings raised its outlook on the sector. Olympus Corp. tumbled after saying it will be prosecuted in the U.K. over alleged accounting fraud.
  • Most Chinese stocks declined after benchmark indexes surged to a 10-week high yesterday.Drugmakers and technology shares dropped, while rare earth producers and port operators rallied.
  • Hong Kong stocks swung between gains and losses as materials companies climbed on mounting concern over Syria. China Construction Bank Corp. dropped amid heavy volume after Bank of America Corp. sold its stake in the mainland’s second-biggest lender.
  • Gold($1408) up $5 and the rand(10.27) 5 cent stronger from the local close.

    Major economic data today:

    - 11:00: GDP – Euro
    - 13:00: Mortgage applications – US
    - 14:30: Trade balance – US

  • The local market should open up +0.1% on higher international index futures.

Tradewise Report

on . Posted in Investment general

The Nikkei share average lost 2.6% to trade at a one-week low on Wednesday, as exporters continued to be hurt by the weaker Dollar that dropped to a six-week low against the Yen.

 Shares on mainland China traded firmer on Wednesday, according to the Reuters’ website, with property companies leading the advancers, but the Hong Kong markets edged lower on concerns over China's slowing economy ahead of key Chinese trade data for July.

According to Reuters, European markets are expected to slip lower on Wednesday, tracking losses on Wall Street overnight as doubts were raised again about the central bank’s plans to ease back on its stimulus policy.

Reuters reports that U.S. stocks slipped lower for a second straight day yesterday after comments from two U.S. Federal Reserve officials again created uncertainty around the withdrawal of its bond-buying program later this year, which all depends on the economic growth data.

Business Day reports that the JSE closed in negative territory on Tuesday‚with mining stocks leading the downside on the back of lower commodity prices.

The Rand was last trading weaker at R9.9231 against the Dollar, lower at R13.1917 against the Euro and weaker at R15.1793 against the British Pound.

The gold price dropped yesterday on persistent market rumours that the US Fed could ease back on its easy monetary stimulus sooner than expected. Gold was last trading at $1 281.70, with the platinum price quoted at $1 423.50, while the palladium price was at $719.00.

Brent crude oil was last trading firmer at $107.92 a barrel.

 

Traders Corner

on . Posted in News Flash

  • US stocks fell, as retailers’ results disappointed and trade data fuelled concern the Fed may reduce its bond purchases this year.
  • Japanese shares fell, as exporters slipped after the yen traded at a seven-week high to the dollar and earnings disappointed investors.
  • Hong Kong’s benchmark stock index fell a second day as investors await data to assess China’s economy and after comments signalling the U.S. Federal Reserve may soon pare stimulus.
  • Gold trading $4 lower and the rand 1 cent stronger from the local close.
  • Major economic data today:

-          12:00: Industrial production - Germany

-          13:00: Mortgage applications - US

  • The local market should open down -0.3% on weaker world markets.

Fed Bank of Chicago President Charles Evans, a voting member of the U.S. central bank’s policy committee who has supported increased stimulus, is scheduled to speak to reporters today in remarks that will be made public later