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Weekly Focus - 02 December 2019

WEEKLY FOCUS                                               02 December 2019

 

More signs of improvement in global manufacturing
 

 

The large-cap Dow Jones Industrial Average, the S&P500 and the technology heavy Nasdaq reached all-time highs again during a holiday shortened week. Early indications of a favourable holiday shopping trend boosted shares of Amazon and the discretionary sector outperformed. Treasury bonds remained in a tight range but corporate bonds benefitted from the risk-on sentiment and spreads narrowed. French luxury goods maker LVMH announced a deal to buy Tiffany & Co. and Charles Schwab announced a plan to acquire discount broker TD Ameritrade.


The week had started well for semiconductor stocks after China announced new intellectual property legislation which would further ease trade tensions after it is enacted. Economic data was supportive as new home sales was better than estimated and durable goods orders for October rebounded. Third quarter GDP estimates were also revised higher to an annualised 2.1% from 1.9% on account of more resilient business investment. This morning, data released by IHS Markit on manufacturing PMIs indicate sequential improvements in China, Germany and France. US data remains above the 50 expansion level and is a sign that the US and China are currently the engines of global growth. The flip side of it however, is that global stock markets are highly sensitive to the outcome of trade talks between the two countries.


In the UK, focus remains on the outcome of the elections of 12th December. YouGov polls predict 359 seats for the Conservative Party and this would be the largest majority in decades. This would enable Prime Minister B. Johnson to deliver a new Brexit deal to parliament before Christmas.

 

 

 

Value

1 week

Year to

Date

       
 

Equity Indices

 

 

 

S&P500

3,141

0.23%

25.30%

S. Africa 40

5,525

-2.69%

5.12%

Stoxx50

3,714

0.21%

23.79%

FTSE100

7,378

-0.22%

9.69%

DAX

13,278

0.32%

25.85%

CAC40

5,924

0.01%

25.26%

SMI Index

10,521

0.55%

24.88%

FTSE MIB

23,332

-0.55%

27.37%

Shanghai Comp

2,876

-1.04%

15.31%

BSE Sensex

40,789

-0.25%

13.09%

Nikkei

23,530

1.02%

17.56%

Major currencies

USDZAR

14.68

-0.69%

2.17%

EURUSD

1.10

0.06%

-3.91%

GBPUSD

1.29

0.16%

1.26%

USDCHF

1.00

0.35%

1.89%

EURCHF

1.10

0.41%

-2.11%

USDJPY

109.63

0.64%

0.04%

EURGBP

0.85

-0.09%

-5.12%

USDAUD

1.48

0.09%

4.11%

Dollar Index

98

0.00%

2.62%

Commodities

 

 

 

Brent

61.19

-3.83%

13.77%

WN oil

56.02

-3.43%

23.36%

Copper

2.67

0.30%

0.91%

Platinum

894.60

-0.37%

11.70%

Sugar

12.95

1.01%

7.65%

Corn

382.38

3.21%

1.97%

Gold

1,462.55

-0.10%

11.42%

Sovereign Yields

US10Y

1.83

4.51%

-31.83%

UK10Y

132.67

0.42%

7.71%

GermanylOY

-0.31

-12.32%

-224.39%

Deposit rates with selected banks

Investec Bank 32 days CCM - USD 1.20%

     
Contact us: Durban +27 (0) 31 566 3365 | CPT +27 ( 0 ) 21 851 0920 | JHB +27 ( 0 ) 11 017 7230 | Email: enquiries@pegasus-wm.com
Disclaimer: The research report has been prepared for information purposes and does not constitute an offer. While reasonable care has been taken to ensure that its contents are not untrue or misleading, no representation is made as to its accuracy or completeness and the company accepts no liability whatsoever for any direct or consequential loss, including without limitation any loss of profits, arising from reliance on this report
 

 



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