Tradewise Report

on . Posted in Investment general

The Nikkei Index dropped lower on Friday as tensions in the Ukraine flared up again, but expectations that local investors begin buying up large-cap stocks helped to limit the losses.

Shares on mainland China have risen on Friday, supported by banking and outperforming aviation shares, while the Hang Seng Index in Hong Kong dropped on some profit-taking and lacklustre earnings, with investors shifting their focus back to economic factors such as China's official manufacturing purchasing managers' index (PMI) due on Monday.

According to Reuters, European markets, the Euro and German 10-year Bund yields dropped on Thursday after the Ukrainian president said Russian forces had invaded his country.

Reuters reports that U.S. markets slipped lower on Thursday with rising tensions between Ukraine and Russia the focus of investors again, with the U.S. saying it was considering more sanctions, while a trio of economic reports such as GDP showed that the U.S. economy was stronger than initially thought, while jobless claims fell for a second straight week and July pending home sales rose far more than had been expected to an 11-month high.

The Business Day website reports that the JSE All Share Index closed in negative territory on Thursday, with investors selling out of resources-related shares on the back of the continued weakness in the iron spot price, which is seen as a lead indicator to the health of global growth, while implats, the world’s second largest platinum producer, lost 5% on the day after reporting a poor set of full-year results.

The Rand was last trading slightly weaker at R10.6380 against the US Dollar, with the Euro quoted firmer at R14.0176, but the British Pound quoted softer at R17.6141.

The gold price was steady in Singapore trade on Friday, but growing tensions between Russia and Ukraine could boost the precious metal as a safe-haven, while purchases from jewellery makers have also helped gold to recover from a two-month low. Gold was last trading at $1,288.58, with the platinum price quoted at $1,423.40, while the palladium price was last trading at the $892.70 level.

Brent was last trading slightly higher at $102.79 a barrel.

Traders Corner

on . Posted in News Flash

U.S. markets closed lower yesterday with the Standard & Poor’s 500 Index dropping below the psychological 2 000 points level, as the escalating violence in Ukraine, while disappointing retail earnings eclipsed economic data that the economy was expanding faster than initially estimated. Asian markets traded lower this morning but both the US and UK futures are trading higher. The Rand was last trading weaker at R10.6408 against the US Dollar, while the gold price is steady at $1,288.88 an ounce. 

Key macro events:

  • Eurozone: Unemployment Rate

  • Eurozone: CPI

  • China: Leading Index

  • Japan:  Jobless Rate

  • Japan: Retail Sales

  • Japan: Industrial Production

  • US: Personal Income and Spending

  • US: Chicago PMI

  • US: University of Michigan Consumer Confidence Index

 

Tradewise Report

on . Posted in Investment general

The Nikkei Index in Tokyo traded lower on low volumes on Thursday with investors deciding to move to the side lines ahead of another batch of key economic data on Friday.

The Hang Seng Index in Hong Kong traded higher on Thursday on the back of another steady performance on Wall Street overnight but gains were limited by the performance on mainland China which fell after batch of initial public offerings (IPOs) began diverting money from existing stocks.

According to Reuters, European markets ended mix on Wednesday, with investors taking a break after the recent brisk rally, while investor appetite for risk was also dented after market research group GfK reported that German consumer morale was declining for the first time in more than 1½-years.

Reuters reports that U.S. markets closed almost flat on Wednesday, with the S&P 500 Index edging slightly higher to another record closing high in a listless trading session, but retail stocks such as Tiffany & Co and apparel retailer Express Inc both surged higher after reporting quarterly revenue that beat market expectations, while electronics retailer Best Buy Co Inc recovered some of the previous day’s steep losses.

The Business Day website reports that the JSE All Share Index ended 0.23% lower on Wednesday with gold and platinum mining shares the gainers on the day but banking and resources led the decliners, with no real drivers to provide reasons for investors to buy other than a record-breaking run on Wall Street, while a stronger Rand also limited shares such as Sasol‚British American Tobacco‚SABMiller and Naspers.

The Rand was last trading slightly firmer at R10.6164 against the US Dollar, with the Euro also quoted stronger at R14.0198 and the British Pound quoted at R17.5877.

The gold price has climbed for the third straight session in Singapore on Thursday on the back of a weaker US Dollar, as well as increased tensions between Ukraine and Russia. Gold was last trading at $1,286.10, with the platinum price quoted at $1,417.40, while the palladium price was last trading at the $890.00 level.

Brent was last trading slightly lower at $102.60 a barrel.

Traders Corner

on . Posted in News Flash

US markets closed higher yesterday with the Dow adding 0.09% and the broader S&P 500 Index edging 0.01% higher to hold the 2000.12 points level, but the technology-heavy NASDAQ Composite Index lost 0.02%. Asian markets traded lower this morning with both US and FTSE futures also trading weaker. The ALSI future was last trading 0.63% lower. The Rand was last quoted firmer at R10.6145 against the US Dollar, while the gold price has climbed higher to trade at $1,288.86 an ounce. 

Key macro events:

  • EU: Eurozone Consumer Confidence

  • US: GDP

  • US: Kansas City Fed Manufacturing Survey

  • US: Farm Prices