Traders Corner

on . Posted in News Flash

US markets tumbled overnight with futures down further this morning as geopolitical tensions rise on the international front. Asian markets is trading mostly lower this morning with the gold price quoted at $1,314 an ounce, while the Rand is traded at R10.71/$.

Key macro events:

  • Europe: ECB current account

  • China: June Property prices

  • US: Leading Index (MSe 0.4%)

  • US: University of Michigan Consumer Confidence Index

Tradewise Report

on . Posted in Investment general

The Nikkei Index climbed to a 1½-week high on Thursday, boosted by advances made on Wall Street overnight, while the share price of Shinko Electric Industries Co which supplies such products as plastic laminated packages and heat spreaders to Intel, jumped after Intel Corp forecast quarterly revenue that was above analysts' estimates.

The Hang Seng Index was pulled down on Thursday after shares on mainland China dropped as investors rotated out of blue-chip shares and picked up some beaten-down growth stocks, while also reserving some money for new initial public offerings (IPOs).

Reuters reports that European markets are expected to open slightly lower on Thursday after putting one of their best performances for three months yesterday, with a promising earnings season in the spotlight despite mixed results in the United States.

According to Reuters, U.S. markets moved higher on Wednesday, with the Dow closing at another record high on the back of merger news around Time Warner and Twenty-First Century Fox, which had earlier made an $80-billion takeover offer for the company, while strong corporate earnings from Intel Corp the world's largest chipmaker also boosted investor sentiment.

Business Day reports that the JSE All Share Index closed firmer on Wednesday, supported by higher global equity markets, while the JSE Banking Index added 1.45% despite a possible interest rate hike by the Reserve Bank with estimates ranging from 25 to 50 basis points.

The Rand is trading slightly firmer at R10.6752 against the US Dollar, with the Euro quoted at R14.4335 and the British Pound at R18.2618.

The gold price edged higher in Singapore on Thursday to move above the $1,300 an ounce level as buyers bought after the recent sharp decline. The gold price last traded at $1,307.60, with the platinum price quoted at $1,489.75, while the palladium price is trading at $876.75.

Brent was last trading at $107.21 a barrel.

Traders Corner

on . Posted in News Flash

US markets closed in green territory across the board with the Dow ending at its 15th record high this year. It seems like the bulls will keep marching on in the short term at least with miners in Australia trading 1%-plus this morning. The Rand remains firm, currently trading at R10.67/$, ahead of today’s interest rate decision expected at 3pm local time, while gold last quoted at $1,306 an ounce. World futures are trading slightly negative this morning.

Key macro events:

•             SA: SARB Interest rate decision

•             US: Housing starts

•             US: Initial jobless claims

•             US: Building permits

•             US: Bloomberg consumer comfort

Tradewise Report

on . Posted in Investment general

The Nikkei Index traded slightly lower on Wednesday despite Chinese economic data that was slightly better than expected, while weakness on Wall Street overnight also limited investor risk appetites.

The Hang Seng Index, as well as the shares on mainland China inched slightly higher on Wednesday, after Beijing reported that economic growth increased by 2% in the second quarter, taking annual growth for April-June to 7.5%, while retail sales and industrial production were either in line with market expectations or slightly higher.

Reuters reports that European markets are expected to open firmer on Wednesday after Chinese growth data came out slightly above market expectations, suggesting strong demand in the world's largest metals consumer.

According to Reuters, U.S. markets ended in negative territory on Tuesday but still managed to close well above the day’s lows with the Dow reversing all of its earlier losses, following comments from Federal Reserve Chair Janet Yellen that "equity valuations of smaller firms, as well as social media and biotechnology firms appear to be stretched."

Business Day reports that the JSE All Share closed higher in choppy trade on Tuesday, after comments from US Federal Reserve chair Janet Yellen that reiterated that an accommodative monetary policy was still required to achieve the central bank’s goals, while the US earnings reporting season was also a driver for the local bourse.

The Rand is trading slightly lower at R10.7160 against the US Dollar, with the Euro quoted at R14.5350 and the British Pound at R18.3373.

The gold price was steady in Singapore trade on Wednesday on the back of a stronger US Dollar, as well as fears that the Federal Reserve could raise U.S. interest rates sooner than expected, but traders expect gold to fall further, especially as this week's $40 drop has failed to produce demand in physical buying in Asia. The gold price last traded at $1,298.08, with the platinum price quoted at $1,481.60, while the palladium price is trading at $865.28.

Brent crude oil has moved above the $106 a barrel level on Wednesday following China growth data that implied oil demand increased to its highest since the beginning of last year, offsetting easing concerns about supply disruptions from violence in North Africa, the Middle East and Ukraine. Brent was last trading at $106.20 a barrel.