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Market Update

WM Market Update – November 2017

Global. Macroeconomic data in the US continued to confirm a positive trend and this was reflected in equities maintaining their improvement. The Trump administration’s proposed tax reforms gained traction in both the Senate and Congress which provided further impetus for the markets. All the major US equity indices traded at record highs, with the Dow Jones returning 3.83%, the S&P 500 2.81% and the tech heavy NASDAQ 2.17%. Read the full article Domestic. For South Africa the moment of truth arrived during the month in the form of the three major ratings agencies pronouncing on their evaluations of the local economy. Fitch opted to keep its ratings unchanged at BB+ with a stable outlook. Moody’s opted to place its ratings on review for a downgrade – the decision being held over until after the February budget. S&P on the other...
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EB Market Update – November 2017

Global. Macroeconomic data in the US continued to confirm a positive trend and this was reflected in equities maintaining their improvement. The Trump administration’s proposed tax reforms gained traction in both the Senate and Congress which provided further impetus for the markets. All the major US equity indices traded at record highs, with the Dow Jones returning 3.83%, the S&P 500 2.81% and the tech heavy NASDAQ 2.17%. Read the full article Domestic. For South Africa the moment of truth arrived during the month in the form of the three major ratings agencies pronouncing on their evaluations of the local economy. Fitch opted to keep its ratings unchanged at BB+ with a stable outlook. Moody’s opted to place its ratings on review for a downgrade – the decision being held over until after the February budget. S&P on the other...
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WM Market Update -October 2017

Global: Growth continues In the US, macroeconomic data remained encouraging with the better than expected Q3 GDP growth number of 3% surprising on the upside. Results from the tech sector were encouraging whilst corporate earnings were above expectations. In spite of concern over stubbornly weak inflation, investors remained confident and markets achieved new highs. Read the full article Domestic: A sad tale Of particular significance for the local market was the release of the much anticipated Medium-Term Budget Policy Statement by Finance Minister Malusi Gigaba. It unsurprisingly painted a grim picture of the dire financial straits that the country is in. The main shock is that the projected revenue shortfall for 2017/18 is a staggering R50.8bn – due to weak economic growth and below par tax collection. This translates into a cumulative R209bn budget shortfall over the next three years....
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EB Market Update – October 2017

Global: Growth continues In the US, macroeconomic data remained encouraging with the better than expected Q3 GDP growth number of 3% surprising on the upside. Results from the tech sector were encouraging whilst corporate earnings were above expectations. In spite of concern over stubbornly weak inflation, investors remained confident and markets achieved new highs. Read the full article Domestic: A sad tale Of particular significance for the local market was the release of the much anticipated Medium-Term Budget Policy Statement by Finance Minister Malusi Gigaba. It unsurprisingly painted a grim picture of the dire financial straits that the country is in. The main shock is that the projected revenue shortfall for 2017/18 is a staggering R50.8bn – due to weak economic growth and below par tax collection. This translates into a cumulative R209bn budget shortfall over the next three years....
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WM Market Update – August 2017

Global: An uneasy North Korean stand-off In spite of the ravages of Hurricane Harvey and deteriorating US/North Korea relations, US equity markets continued to trade higher, boosted by positive economic data which included an upward revision of Q2 GDP from 2.6% to 3.0%. The Dow Jones returned 0.26% and surpassed the 22,000 points level for the first time. The S&P 500 returned a paltry 0.05% while the tech heavy NASDAQ delivered 1.27%. Read the full article Domestic: Come December The market breathed a sigh of relief when Moody’s rating agency elected not to release their scheduled ratings review on the basis that nothing material had changed in the general economic outlook to warrant one. The failed no confidence vote against President Zuma resulted in considerable Rand volatility. Somewhat surprisingly the market appeared to take some cheer on the passing of...
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EB Market Update – August 2017

Global: An uneasy North Korean stand-off In spite of the ravages of Hurricane Harvey and deteriorating US/North Korea relations, US equity markets continued to trade higher, boosted by positive economic data which included an upward revision of Q2 GDP from 2.6% to 3.0%. The Dow Jones returned 0.26% and surpassed the 22,000 points level for the first time. The S&P 500 returned a paltry 0.05% while the tech heavy NASDAQ delivered 1.27%. Read the full article Domestic: Come December The market breathed a sigh of relief when Moody’s rating agency elected not to release their scheduled ratings review on the basis that nothing material had changed in the general economic outlook to warrant one. The failed no confidence vote against President Zuma resulted in considerable Rand volatility. Somewhat surprisingly the market appeared to take some cheer on the passing of...
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WM Market Update – July 2017

Global: Economic growth positive In the US, all three major equity indices reached all-time highs with the S&P 500 gaining 1.93%, the Dow Jones 2.54% and the tech heavy NASDAQ 3.38%. The NASDAQ gain was largely driven by spectacular results from Facebook which saw the counter return a whopping 12.10%. The market was generally spurred on by significant improvements in economic data as well as further Dollar weakness. Read the full article Domestic: Political uncertainty remains In spite of a deteriorating political situation, the local equity market shrugged off the negativity and experienced its best month for some considerable time. The re-emergence of a risk-on attitude particularly on the part of global investors saw the JSE/FTSE All Share return a significant 7.03% in total return terms. Read the full article

EB Market Update – July 2017

Global: Economic growth positive In the US, all three major equity indices reached all-time highs with the S&P 500 gaining 1.93%, the Dow Jones 2.54% and the tech heavy NASDAQ 3.38%. The NASDAQ gain was largely driven by spectacular results from Facebook which saw the counter return a whopping 12.10%. The market was generally spurred on by significant improvements in economic data as well as further Dollar weakness. Read the full article Domestic: Political uncertainty remains In spite of a deteriorating political situation, the local equity market shrugged off the negativity and experienced its best month for some considerable time. The re-emergence of a risk-on attitude, particularly on the part of global investors, saw the JSE/FTSE All Share return a significant 7.03% in total return terms. The suspension of the mining charter impacted the Mining Index which improved by a...
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WM Market Update – May 2017

Global – Sell in May? The adage “sell in May and go away” certainly didn’t hold true for both global and emerging markets this month as the MSCI World Equity Index returned 1.78% and the MSCI Emerging Market Index 2.80%, both in Dollar terms. Being out of the market was certainly not the right place to be. However, this unfortunately wasn’t the case for the JSE/FTSE All Share Index which was most disappointing, ending the month down 0.42%. Read the full article Domestic – Rating agencies call the shots! Whilst May began on a positive note for the local market, the uncertainties surrounding President Zuma and ‘State Capture’, coupled with the overhang of a possible further sovereign debt downgrade as well as a sharply declining oil price, all contributed to a risk-off attitude prevailing – with the result that the...
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EB Market Update – May 2017

Global – Sell in May? The adage “sell in May and go away” certainly didn’t hold true for both global and emerging markets this month as the MSCI World Equity Index returned 1.78% and the MSCI Emerging Market Index 2.80%, both in Dollar terms. Being out of the market was certainly not the right place to be. However, this unfortunately wasn’t the case for the JSE/FTSE All Share Index which was most disappointing, ending the month down 0.42%. Read the full article Domestic – Rating agencies call the shots! Whilst May began on a positive note for the local market, the uncertainties surrounding President Zuma and ‘State Capture’, coupled with the overhang of a possible further sovereign debt downgrade as well as a sharply declining oil price, all contributed to a risk-off attitude prevailing – with the result that the...
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