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Markets WRAP: Asian markets bleed, oil starts 2019 with price slide

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02 Jan 2019

Rand ends the day weaker at R14.45/$

The rand ended the day's session 0.51% weaker at R14.45. The day's trade ranged between R14.39 and R14.53 to the greenback.

The local currency weakened dropped below the R14.50/$ mark in the early afternoon and the JSE All Share index traded 2.37% lower on the back of a contraction in an index tracking mainly private Chinese manufacturing data which indicated a possible slowdown in its economy.

The Reserve Bank also announced that its Deputy Governor Francois Groepe - who had served at the SARB for 14 years. He will pursue "outside opportunities" the Reserve Bank said in a statement.

Further ashore, Asian markets ha their worst start since 2016. Media reports indicated that investors were spooked by the data reinforcing the weakness of the Chinese economy.

02 Jan 2019

Oil begins 2019 with renewed slide amid fears over China growth

Oil started 2019 with another price slide as weaker Chinese manufacturing data pointed to slowing demand in the world’s second-biggest consumer of the fuel and to growing risks of a global crude surplus.

Futures declined 1.6% in New York after a turbulent 2018 that saw volatility soar in its final weeks as concerns over the US-China trade dispute and an uncertain economic outlook roiled stock markets.

Though both New York and London crude benchmarks rallied in the last days of 2018, they each lost 20% or more during the year on expectations that booming US shale output could unleash a new glut.

FULL STORY

02 Jan 2019

UK manufacturers step up stockpiling as Brexit deadline looms

UK manufacturers are intensifying their stockpiling efforts as they brace for a potentially disruptive Brexit.Factories reported an almost record increase in stocks last month, IHS Markit said in a report on Wednesday.

New orders also picked up as firms and their clients rushed to protect themselves before the March exit date.

“There is increased concern that the UK could leave the EU without a deal next March and this will lead to serious disruptions,” said Howard Archer, chief economic advisor at EY Item Club.

MORE HERE

02 Jan 2019

Reserve Bank Deputy Governor Francois Groepe resigns

Reserve Bank Deputy Governor Francois Groepe has resigned with effect from January 31, 2019, according to a statement from the bank.

The South African Reserve Bank (SARB) issued the statement on Wednesday afternoon. Groepe had tendered his resignation in December, to pursue "outside opportunities", the statement read.

Groepe had served at the SARB for 14 years, seven of which he served as a non-executive director and the remaining seven as an executive.

FULL STORY

02 Jan 2019

The rand fell below R14.50/$ in the early afternoon on Wednesday, while the JSE All Share index continued to trade in negative territory. 

The local currency, which opened the day's trade at R14.39/$, was changing hands at R14.507 to the dollar at 14:25, down 0.8%. 

The JSE All Share index was trading 2.37% lower, on the back of a contraction in an index tracking mainly private Chinese manufacturing data indicated a possible economic slowdown in the world's second biggest economy. 

Rough start to year as stocks reel from China data

02 Jan 2019

The JSE followed UK, European, Asian and Australian stocks lower on Wednesday. 

The FTSE/JSE All Share was down over 3% by 11:00, and the JSE Top-40 down 3.6%. Every stock in the Top 40 fell, with Anglo American down 4.5%, Naspers down 5% and Old Mutual down 4.2% at 11:00. 

According to Bloomberg, the JSE fell, in part, because of growth concerns in China. 

02 Jan 2019

The rand was steady in early trade on Wednesday morning, opening at R14.39/$ and trading at R14.40 to the greenback at 10:45. 

Andre Botha, senior currency dealer at TreasuryONE, said in a morning mote to clients that the local currency would likely remain rangebound until later in the week when liquidity and momentum returned to global markets. 

"The big news for emerging markets’s will be any news on the US and China trade negotiations and that will be the big theme for the start of the year. We expect the rand to enjoy some of the fruits of the US-China labour if the negotiations go through without a hitch," he said. 

"However, with the nature of the parties involved a deal without some snags."

02 Jan 2019

Asia's stocks post worst start to year since 2016

So much for starting off the new year on the right foot.The benchmark gauge of Asia-Pacific stocks excluding Japan slumped 1.7% 14:54 in Hong Kong as traders returned to work in key regions including Hong Kong, China, Taiwan and Korea.

Japan markets are closed and reopen on January 4.

Wednesday’s plunge, which is the worst start to the year in three, has one culprit - China’s factory conditions slumped in December. 

MORE HERE

02 Jan 2019

Dip in gold price signals slight increase in risk appetite

On the first trading day of 2019, a dip in the gold price signals a slight increase in risk appetite amongst investors, Peregrine Treasury Solutions Bianca Botes said in a market update.

"This represents a reversal of the risk aversion during the last two weeks of 2018 – mainly on the back of US politics – which saw the rand come under pressure," she explained. 

"It is still quiet on the data front, with the EU and the US both releasing PMI today. We can expect to start seeing an increase in trading volumes following the festive season and subsequently an increase in liquidity."

The rand opened at R14.39/$ and was trading at R14.32/$ by 08:45. The expected range of trade is expected to be between R14.20 and 14.48.

02 Jan 2019

Investors battle to swallow Absa's road to recovery tale

Absa is having a hard time convincing some investors it can win back the market share lost while under the control of Barclays.

South Africa’s third-largest lender was once the leading retail bank with over 10 million customers and more mortgages on its books than any of its peers. Now, released from the shackles of London-based Barclays, Absa Chief Executive Officer Maria Ramos can take on more risk with a plan to grow revenue faster than her main rivals from 2019 to 2021.

By its own admission, Absa is lagging FirstRand, Nedbank and Standard Bank in the average number of products per customer and the loyalty of its clients. It has also lost market share among the youth, mass market, middle income and affluent groups. And, to top it all, Absa was 2018’s worst performer in the six-member South African banking index.

Continue reading

02 Jan 2019

Hong Kong leads Asia markets down as 2019 starts on sour note

Asian markets sank Wednesday, starting the new year by extending a slide that made 2018 the worst in a decade, with investors jolted by data reinforcing weakness in China's economy.

With a number of potential banana skins dotting the next 12 months - including the China-US trade row and Brexit - dealers are keeping to the sidelines as they look for signs of stability.

Hong Kong led the losses, tumbling more than two percent, while Shanghai shed one percent after two indicators showed Chinese manufacturing activity shrank in December.

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Rand - Dollar
18.94
-0.2%
Rand - Pound
23.90
-0.0%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,016.25
+1.4%
Gold
2,220.89
+1.2%
Silver
24.88
+1.0%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
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