Global equities rose in the week

Wealth

Global equities rose in the week

Global equities rose in the week, as the rhetoric surrounding the US-China trade battle became less charged. Local equities followed the global trend and the all-share index (ALSI) rose 2.41% for the week. 

Global equities rose in the week, as the rhetoric surrounding the US-China trade battle became less charged. Local equities followed the global trend and the all-share index (ALSI) rose 2.41% for the week. Resources led the charge with a massive 4.44%, followed by financial counters that returned 2.34%. Industrials added 1.43%.

Comments from the Chinese commerce ministry confirming that trade talks remain scheduled for September in Washington helped sooth frayed nerves late in the week. After previous weeks of escalating tension, the past week saw a modest shift in tone from both the United States (US) and China, with China vowing not to immediately retaliate against the latest tariff hike announced by the US.

Brexit uncertainty in the United Kingdom persists. Announcing a new legislative agenda, British Prime Minister Boris Johnson arranged to suspend parliament for a crucial five-week period leading up to the 31 October Brexit date. Lawmakers will have very little time to take action to block a no-deal Brexit or to pass a motion of no confidence in Johnson. Members of Parliament return from their summer recess on Monday and have a week to shape the course of Brexit or pass a motion of no confidence in the government.

South Africa recorded a R2.88bn trade deficit for July, after recording a revised surplus of R5.4bn in June, the South African Revenue Service said in a statement. A trade deficit shows that South Africa’s imports exceeded the value of its exports.

Statistics SA released the producer price inflation (PPI) for July, which at 4.9% was much lower than 5.8% for June and 6.4% for May. The PPI is seen as a good pre-indicator of inflationary pressures. With lower PPI figures, inflation is expected to remain well within the target range of the South African Reserve Bank.

The local currency strengthened against most international counterparts. The rand gained 0.35% against the US dollar to trade at around R15.18. The euro lost 1.77% against the rand and traded at R16.69.

Stability in international markets will improve sentiment towards emerging markets and some stability may be expected in the short-term.

 

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Market data provided by I-Net | News article provided by Securitas with 4D Wealth

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