Tradewise Report

on . Posted in News Flash

The Nikkei Index recovered strongly on Monday, recouping some of its steep losses from Friday on the back of the rally on Wall Street on easing tensions in Ukraine, while a weaker Yen also helped the share price of exporters.

The Hang Seng Index in Hong Kong, as well as the shares on mainland China climbed sharply on Monday, with property and financial shares leading the advance, after Beijing reported mild consumer inflation data on Saturday, which gave authorities room to further relax monetary policy.

According to Reuters, European markets are expected to open higher on Monday, after closing lower on Friday and extending its losses for a seventh time in eight trading sessions on the back of mounting geopolitical fears which increased risk aversion, after U.S. President Barack Obama authorised air strikes in Iraq.

Reuters reports that US markets closed lower to extend its recent weakness on Thursday as Russia banned imports of many Western foods in response to Western sanctions raised concerns about global growth, while the escalating conflict between Russian and Ukraine also had investors concerned.

Business Day reports that the JSE All Share Index pared earlier losses to close almost unchanged on Friday‚ending an eventful week with the focus squarely on the collapse of ABIL, whose share price fell a whopping 179% for the week to close at 31c, with Capitec, its closest competitor giving up 5.37%, while geopolitical tensions continued to weigh on global investor sentiment.

The Rand continued with its mild recovery on Monday on the back of easing risk aversion on global markets, while improved sentiment towards emerging market currencies also provided support. The Rand is trading at R10.6484 against the US Dollar, with the Euro quoted at R14.2768 and the British Pound at R17.8492.

The gold price edged lower in Singapore trade on Monday on the back of firmer equity markets, as well as outflows from the world's top bullion fund, but still managed to hold above the $1,300 an ounce level as investors remain concerned over the situation in the Middle East and Ukraine. Gold was last trading at $1,306.17, with the platinum price quoted at $1,464.50, while the palladium price has climbed to $857.10.

Brent was last trading lower at $105.08 a barrel.