Tradewise Report

on . Posted in Investment general

The Nikkei Index dropped on Tuesday, with the Yen strengthening against the Dollar and hurting exporters such as Toyota Motor Corp, which lost 1.6%, while Honda Motor Co slipped 0.8% lower.

The Hang Seng Index in Hong Kong has dropped lower on Tuesday, after index heavyweight HSBC lost 4.7% on disappointing first half earnings, while the Shanghai Composite Index has also edged lower.

According to Reuters, European markets are expected to open lower on Tuesday, ending a six day advance, with investors following the weaker trend on Wall Street overnight and Asian markets this morning.

Reuters reports that U.S markets ended down on its lowest trading volume this year yesterday, with no major macroeconomic data to drive the market, while the earnings season is expected to slow down quickly this week, despite 100 companies on the S&P 500 index still expected to report earnings.

Business Day reports that the JSE ended in positive territory on Monday, lifted by platinum and resources shares but gold mining shares dropped on a lower gold price, while micro-lender ABIL surged 5.14% higher after announcing a rights issue, but construction company Aveng’s shares lost 11.44% on its worse0than expected trading statement.

The Rand was last trading slightly weaker at R9.8416 against the Dollar, stronger at R13.0366 against the Euro, but weaker at R15.0602 against the British Pound.

The gold price struggled to stay above the $1 300 level in Asian trade on Tuesday, as strong global economic data spoilt its safe-haven appeal, while physical demand from India and China was slow. Gold was last trading at $1 291.80, with the platinum price quoted at $1 439.25, while the palladium price was at $725.75

Brent crude oil was last trading slightly lower at $108.42 a barrel. 

Traders Corner

on . Posted in News Flash

  • US stocks fell from record highs as investors weighed data showing stronger-than-forecast growth in service industries and a Fed official’s comment that the central bank is closer to slowing its monthly bond buying.
  • Asian stocks fell for a second day as stronger growth in U.S. service industries fuelled speculation the Fed will soon be able to reduce economic stimulus.
  • Japanese shares swung between gains and losses as developers and miscellaneous-product makers rose the most among the 33 Topix index subsectors while energy explorers led losses.
  • China’s stocks fell for the first time in six days after the nation’s economic planning agency signalled the government would maintain real-estate curbs and coal companies slumped on concern about the earnings outlook.
  • Hong Kong stocks fell, after HSBC missed earnings estimates and amid speculation the Federal Reserve is closer to reducing stimulus.
  • Gold down $11 and the rand unchanged from the local close.
  • Major economic data today:

-          10:30: Industrial production - UK

-          10:30: Manufacturing production - UK

-          12:00: Factory orders - Germany

-          14:30: Trade balance - US

The local market should open down -0.25% as the gold price slipped and US & Asian markets trade lower

Tradewise Report

on . Posted in Investment general

The Nikkei Index closed lower on Monday as the Yen strengthened against the Dollar following weaker-than-expected U.S. jobs data on Friday, with exporters being sold off as investors took their profits off the table.

Shares in Hong Kong and on mainland China ended firmer on Monday, as the shares of baby product producers surged on expectations that Chinese authorities may allow more couples to have two children.

According to Reuters, European markets are expected to open slightly higher on Monday, on the back of firmer US markets on Friday despite lukewarm U.S. jobs data where investors’ expect the monetary stimulus from the Federal Reserve to continue.

Reuters reports that shares on Wall Street closed higher on Friday, despite U.S. non-farm payrolls data coming in at 162 000‚which was much lower than the 183 000 increase expected, while the unemployment rate slipped to 7.4% from 7.6%.

The Business Day website reports that the JSE closed lower in choppy trading on Friday‚with gold mining shares weighing on the local market despite a slightly firmer gold price, while investors also mulled over the weaker than expected US non-farm payrolls data.

The Rand was last trading firmer at R9.8320 against the Dollar, stronger at R13.0837 against the Euro, and firmer at R15.0442 against the British Pound.

Gold was last trading higher at $1 314.30, with the platinum price quoted at $1 443.25, while the palladium price was at $730.50.

Brent crude oil was last trading slightly lower at $109.11 a barrel.

Traders Corner

on . Posted in News Flash

  • US stocks were little changed, as investors weighed data showing employers added fewer workers than anticipated in July even as the jobless rate dropped.
  • Japanese shares fell, as the yen held gains against the dollar after disappointing U.S. jobs data. Insurers led losses among the measure’s 33 industry groups.
  • China’s non-manufacturing Purchasing Managers’ Index showed the first acceleration since March, government data released on the weekend showed, following an unexpected gain in the official manufacturing PMI last week.
  • Hong Kong stocks rose, extending the benchmark index’s longest weekly winning streak since October, after China’s services data released on the weekend accelerated the first time since March in a sign the economy is stabilizing.
  • Gold up $4 and the rand unchanged from the local close.
  • Major economic data to be released today:

-          10:00:PMI services - Euro

-          10:30:PMI services - UK

-          11:00:Retail sales - Euro

-          16:00:ISM non-manufacturing - US

  • The local market should open up +0.1% on higher metal prices and UK futures.