Markets WRAP: Rand closes at R14.38/$, stocks end on a high

Rand ends last session for 2018 at R14.38/$ 

The rand, which started the day at R14.42/$ ended the day at R14.38/$.

Bloomberg reported that SA stocks ended the worst year since the 2008 financial crisis on a positive note having climbed 0.6% in the final session. 

This is on the back of US President Donald Trump said there was "big progress" in trade talks with China. 

Politics will remain a dominant theme int he currency market for 2019, Bianca Botes, Corporate Treasury Manager at Peregrine Treasury Solutions said in a market update.

SA stocks end worst year since 2008 on positive note

South African stocks climbed 0.6% in the final session of 2018 after President Donald Trump reported "big progress" in trade talks with China, paring losses for a year that’s still the market’s worst since 2008.

Markets stagger towards end of worst year since financial crisis

World stock markets staggered Monday towards the end of their worst year since the global financial crisis a decade ago, rocked by rising interest rates, the global trade war and Brexit, dealers said.

London and Paris wobbled in holiday-shortened trade on New Year's Eve - but nursed dizzying double-digit annual falls after an exceptionally volatile 2018.

Hong Kong rose Monday after US President Donald Trump hailed "big progress" on resolving Washington's trade war with Beijing, but was down almost 14% over the year.

Zunaid Bulbulia quits Huge Group

Telecommunications company Huge Group on Monday announced the resignation of its director and Chief Financial Officer Zunaid Bulbulia after three years of service.His resignation will take effect from December 31, 2018.

Bulbulia is also an adjunct professor at the Wits Business School and an advisory board member to the Gauteng Division of FNB Islamic Bank.

Commodities had another poor year in 2018, hurt by substantial losses in energy and base metals, and raw materials will head into January burdened by concerns global economic growth is poised to slow.

The Bloomberg Commodity Index, a gauge of returns on 22 raw material futures, is heading for a 12% drop this year after hitting the lowest since April 2016 earlier this month. It’ll be the seventh annual fall in 11.

Raw materials have lost ground amid a flurry of signs the pace of expansion will slow next year, and as the US-China trade war spurs uncertainty. 

By mid-morning on Monday all the local bourse's major indices were showing gains, with Resources up 0.82%, Industrials up 0.25% and Financials 0.44% higher. 

The JSE All-Share index was at 52 672.42 points, up 0.4% on the day. 

China slowdown deepens

China heads into the new year with its factories back in contractionary territory as the threat of a prolonged trade war dampens sentiment and stimulus struggles to gain traction.

The manufacturing purchasing managers index dropped to 49.4 in December, the weakest since early 2016 and below the 50 level that denotes contraction.

Measures of new orders and new export orders slipped - a bearish signal for future demand - while readings for input and output prices weakened.

Gold is closing out 2018 on a strong note, with haven demand in the ascendant amid volatile trading in global equities, rising concern about the economic outlook and a drawn-out government shutdown in the US.Spot bullion is holding near a six-month high after topping $1 280 an ounce, and the metal is set for the best monthly gain in almost two years.

December’s rally has pared an annual decline, the first full-year loss since 2015.

Rand makes slow headway against the dollar

The rand started the day at R14.42 against the dollar, according to a market update from Peregrine Treasury Solutions corporate treasury manager Bianca Botes.

Botes highlighted that the rand could move to R14.30/$. "Liquidity remains low, however, with very little trading activity. We are heading in to the new year with politics remaining the dominant theme in the currency market," she said.

The expected range of trade is between R14.35/$ and R14.52/$.

Until a trade dispute between the US and China is resolved, a single tweet on the matter will have the power to ignite rallies and sell-offs.

The tweet in question this week is President Donald Trump’s declaration that “big progress” is being made toward a deal between the US and China, and it may spur gains across emerging markets.

The message comes about 10 days before a US government delegation is said to plan a trip to Beijing in the week of January 7 for the first face-to-face discussion between the two sides since early December.

Hostage to everything from the US-China trade dispute, a global tech sell-off and interest rate hikes, this has been one of the toughest years for Hong Kong stocks.

The benchmark Hang Seng Index ended the year down 14%, the worst since 2011, with technology shares and trade-war proxy the WH Group among the most sold.

Heavyweight Tencent Holdings posted its steepest annual loss on record, while drugmakers also joined the worst-performer list following a recent sell-off.Hong Kong shares traded for half the day on Monday as 2018 came to a close.

The Hang Seng climbed 1.3%. WH Group was among top performers after US President Donald Trump touted “big progress” in trade talks with his Chinese counterpart Xi Jinping.