Tradewise Report

on . Posted in Investment general

The Nikkei share average climbed to a 4½-week high on Tuesday on the back of a weaker Yen which slipped to a seven-month low against the US Dollar, boosting the share prices of exporters on speculation of an increase to earnings, while a planned cabinet reshuffle by Prime Minister Shinzo Abe also lifted investor sentiment.

The Hang Seng Index dropped to a three-week low on Tuesday, dragged down by profit-taking above the 25,000-points level, while the shares on mainland China inched slightly higher on the back of outperforming port and liquor stocks.

According to Reuters, European markets started the month of September slightly higher on Monday, supported by speculation over mergers and acquisitions with British broadcaster ITV gaining 2.5% on reports that Liberty Global Plc was canvassing support from major ITV shareholders following its 6.4% acquisition and raising speculation of a full takeover bid, while investors also expect new monetary stimulus measures from the ECB after its meeting later this week.

U.S. markets were closed on Monday for the Labour Day holiday.

The Business Day website reports that the JSE All Share ended broadly firmer on Monday, except for platinum and resource shares, with not much to drive the local market in the absence of Wall Street, which was closed for the Labour Day holiday, while diversified industrial group Bidvest was the best performing share after announcing plans of a separate London listing for its international food business to access cheaper capital.

The Rand was last trading weaker at R10.7080 against the US Dollar, with the Euro quoted at R14.0496, while the British Pound was also quoted weaker at R17.7268.

The gold price slipped to its lowest level in almost a week in Singapore on Tuesday on the back of a stronger US Dollar which outgunned lower equity markets and increased tensions in Ukraine. Gold was last trading lower at $1,283.01, with the platinum price at $1,416.90, while the palladium price was last trading at the $906.20 level.

Brent was last trading lower at $102.76 a barrel.

Trdaders Corner

on . Posted in News Flash

There is not much to go on this morning with the US closed overnight. Asia is trading mostly higher, but our key-catalysts Tencent and BHP Billiton are giving mixed indications. The Rand was last at R10.71/$, with gold at $1,283 an ounce. World futures are trading +0.15%

Key macro events:

    • Eurozone: PPI
    • Asia: RBA announces rates
    • US: Markit manufacturing PMI
    • US: ISM Manufacturing
  • US: Construction spending

Tradewise Report

on . Posted in Investment general

The Nikkei Index edged slightly higher on Monday taking direction from Wall Street's performance on Friday, while also supported by advances in the share prices of some mid- and small-cap shares, but any gains were limited on investor concerns that the Japanese economic recovery from a tax hike earlier this year may be slower than initially thought.

The Hang Seng Index began September on a firmer footing on Monday with investors buying into some heavyweight stocks that were knocked down last week, while shares on mainland China also climbed with defence and media shares leading the gainers, despite official PMI data showing signs of weakness in the economy.

According to Reuters, European markets are expected to open mixed with the German and French markets seen opening unchanged, while the UK market is seen opening between 4 points higher and 7 points lower.

Reuters reports that U.S. markets ended a strong August with a whimper on Friday, with the S&P 500 Index climbing modestly higher to a new record close above 2003.37 points on the back of the latest bullish economic data such as business activity in the U.S. Midwest which showed a rebound, while U .S. consumer sentiment rose more than expected, but the rally was threatened by overseas concerns after Britain raised its international terrorism threat level to the second highest.

The Business Day website reports that the JSE All Share Index tracked global equity markets lower on Friday, ending a rough month for the resources sector, with companies such as Anglo American and BHP Billiton falling on the back of sustained weakness in the spot price of iron ore, while there were big losses in Implats following its full-year results.

The Rand was last trading slightly softer at R10.6664 against the US Dollar, with the Euro quoted firmer at R14.0001, but the British Pound was quoted weaker at R17.6840.

The gold price nudged lower in Singapore trade on Monday, failing to find support despite the escalating geopolitical tensions in Ukraine as a stronger Dollar, as well as firmer equity markets offset the precious metal's appeal as a safe-haven investment. Gold was last trading slightly lower at $1,287.75, with the platinum price quoted at $1,418.70, while the palladium price was last trading at the $907.80 level.

Brent was last trading higher at $103.23 a barrel.

Traders Corner

on . Posted in News Flash

US markets closed in positive territory on Friday with the S&P 500 Index on another record high. Asian markets are trading slightly firmer this morning, but with the US market closed today, we expect trading volumes to be thin. The Rand was last quoted at R10.66/$, with the gold price trading at $1,287 an ounce. FTSE futures are trading +0.2%.

Key macro events:

    • US: Markets closed - Labor Day holiday
    • China: Manufacturing PMI
  • Japan: Manufacturing PMI