Category

Market Update

WM Market Update – July 2018

Global: First shots fired in the trade war! US equities continued to improve as employment numbers were indicative of a growing economy, and earnings results were ahead of expectations. The US June nonfarm payrolls added 213,000 new jobs, far outweighing expectations of 195,000, while May’s employment numbers were also revised upwards. Although concerns remained over the Trump administration’s proposed punitive trade taris, an indication later in the month that the US, China and Europe were prepared to renegotiate trade terms also helped improve market sentiment. The oil price registered a sharp decline as OPEC and Russia announced an increase in supply. Read the full article Domestic: Slow road ahead. South African equities failed to follow global markets higher in July, as the local economy remained in the doldrums and a rming of the Rand in the latter part of the...
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EB Market Update – July 2018

Global: First shots fired in the trade war! US equities continued to improve as employment numbers were indicative of a growing economy, and earnings results were ahead of expectations. The US June nonfarm payrolls added 213,000 new jobs, far outweighing expectations of 195,000, while May’s employment numbers were also revised upwards. Although concerns remained over the Trump administration’s proposed punitive trade taris, an indication later in the month that the US, China and Europe were prepared to renegotiate trade terms also helped improve market sentiment. The oil price registered a sharp decline as OPEC and Russia announced an increase in supply. Read the full article Domestic: Slow road ahead. South African equities failed to follow global markets higher in July, as the local economy remained in the doldrums and a rming of the Rand in the latter part of the...
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WM Market Update – May 2018

Global: Viva Italia! US equities continued to advance in May, with earnings and economic data providing a buffer against the machinations of President Trump and his continued trade tariff rhetoric. The Trump administration confirmed it would implement punitive trade tariffs on steel and aluminium imports from Canada, Mexico and the EU,and also withdrew from the Iranian nuclear accord.The threat of a potential disruption to international trade did rattle the markets, but the robustness of economic growth data negated the overall impact. Read the full article Domestic: A new dawn? In line with the majority of global equity markets the FTSE/JSE All Share Index experienced a torrid May,declining -3.5% led by sharp falls in retail and financial shares. Disappointing corporate earnings reports also helped create a negative market attitude. The FTSE/JSE Financials Index declined -6.3% largely as a result of Rand...
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EB Market Update – May 2018

Global: Viva Italia! US equities continued to advance in May, with earnings and economic data providing a buffer against the machinations of President Trump and his continued trade tariff rhetoric. The Trump administration confirmed it would implement punitive trade tariffs on steel and aluminium imports from Canada, Mexico and the EU,and also withdrew from the Iranian nuclear accord.The threat of a potential disruption to international trade did rattle the markets, but the robustness of economic growth data negated the overall impact. Read the full article Domestic: A new dawn? In line with the majority of global equity markets the FTSE/JSE All Share Index experienced a torrid May,declining -3.5% led by sharp falls in retail and financial shares. Disappointing corporate earnings reports also helped create a negative market attitude. The FTSE/JSE Financials Index declined -6.3% largely as a result of Rand currency...
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WM Market Update – April 2018

Global: Trumpy tweets! US economic data continued to display solid growth with GDP for Q1 confirmed at 2.3%. This was slower  than growth in Q4 but was ahead of expectations. Inflation also ticked up with the target range of 2% now in  sight. In spite of this encouraging data, equity market performance remained pedestrian because overshadowing the  positive news was the proposal by President Trump that the US impose penalising trade sanctions against China. Read the full article Domestic: Light at the end of the tunnel? A plethora of encouraging economic data resulted in the FTSE/JSE All-Share delivering a solid performance for April – returning 5.4% for the month which was to a large extent driven by a resurgence in resources counters.The resources index received an additional boost from a rise in gold stocks, on the back of a renewed...
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EB Market Update – April 2018

Global: Trumpy tweets! US economic data continued to display solid growth with GDP for Q1 confirmed at 2.3%. This was slower than growth in Q4 but was ahead of expectations. Inflation also ticked up with the target range of 2% now in sight. In spite of this encouraging data, equity market performance remained pedestrian because overshadowing the positive news was the proposal by President Trump that the US impose penalising trade sanctions against China. Read the full article Domestic: A change to the old guard. A plethora of encouraging economic data resulted in the FTSE/JSE All-Share delivering a solid performance for April – returning 5.4% for the month which was to a large extent driven by a resurgence in resources counters. The resources index received an additional boost from arise in gold stocks, on the back of a renewed escalation...
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WM Market Update – February 2018

Global: Wage inflation the culprit? The US equity markets suffered a sharp decline early in February, driven initially by wage inflation data which suggested that the Federal Reserve would be inclined to increase interest rates at a faster rate than was initially expected. This concern was further heightened by newly elected Federal Reserve Chairman Jerome Powell suggesting to the US Congress that there was scope to raise interest rates four times this year. Read the full article Domestic: A change to the old guard. Politics, the Budget and the downturn in global equity markets took centre stage during February. Cyril Ramaphosa was sworn in as the new president of South Africa following the resignation of Jacob Zuma. The budget speech held no great surprises given the current state of the economy, the main feature being a rise of 1% in...
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EB Market Update – February 2018

Global: Wage inflation the culprit? The US equity markets suffered a sharp decline early in February, driven initially by wage inflation data which suggested that the Federal Reserve would be inclined to increase interest rates at a faster rate than was initially expected. This concern was further heightened by newly elected Federal Reserve Chairman Jerome Powell suggesting to the US Congress that there was scope to raise interest rates four times this year. Read the full article Domestic: A change to the old guard. Politics, the Budget and the downturn in global equity markets took centre stage during February. Cyril Ramaphosa was sworn in as the new president of South Africa following the resignation of Jacob Zuma. The budget speech held no great surprises given the current state of the economy, the main feature being a rise of 1% in...
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WM Market Update – January 2018

Global: Stretched valuations? US equities continued to improve over the month, as fresh economic data provided additional momentum to the market which began the year on a very positive note. Inflation continued to rise on the back of higher energy prices, and retail sales were indicative of a robust economy. Employment numbers also remained healthy with the unemployment number remaining unaltered at 4.1%. Read the full article Domestic: Improved political and economic sentiment A perceived reduction in political risk, and a renewed sense of positive global economic growth, resulted in a risk on environment prevailing on the JSE. Equity prices in December had already started to reflect this more positive sentiment. However, an inhibiting factor in January was the strength of the Rand which traded at its highest level against the USD in two and a half years. The resulting outcome...
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EB Market Update – January 2018

Global: Stretched valuations? US equities continued to improve over the month, as fresh economic data provided additional momentum to the market which began the year on a very positive note. Inflation continued to rise on the back of higher energy prices, and retail sales were indicative of a robust economy. Employment numbers also remained healthy with the unemployment number remaining unaltered at 4.1%. Read the full article Domestic: Improved political and economic sentiment A perceived reduction in political risk, and a renewed sense of positive global economic growth, resulted in a risk on environment prevailing on the JSE. Equity prices in December had already started to reflect this more positive sentiment. However, an inhibiting factor in January was the strength of the Rand which traded at its highest level against the USD in two and a half years. The resulting...
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