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Weekly Focus - 03 February 2020

Weekly Focus                                 03 February 2020

Manufacturing PMIs shows that European GDP growth is improving

 

 

Major indices retraced last week. The S&P500 lost half a percent and the DAX and CAC40 lost over a percent. Although economic data releases remained positive and corporations reported strong earnings, investors continued to worry about the effects of the corona virus outbreak. Over seventeen thousand people have been infected by the virus in China and there are 360 casualties. The World Health Organisation has declared the virus a global health emergency and businesses in China and more generally South East Asia have been hit. Many experts estimate that the outbreak will reach its peak by mid-February and decrease thereafter. Meanwhile OPEC could reduce their daily oil production by 500,000 barrels per day after a drop in demand over reduced airline travel and economic activity in general.

Microsoft and Apple, the two largest companies by market capitalisation, reported better earnings that estimated by analysts. Microsoft continues to benefit from its Azure Cloud computing segment and strong iphone sales supported Apple. Amazon also rallied after beating earnings estimates and recording solid growth in its prime membership program. On the economy, the Commerce Dept. reported that GDP growth for the fourth quarter was in line with expectations of 2.1%.

In the Eurozone, GDP growth was a modest 1% over the year due in large part to the public sector strikes in France. But the German economy ministry raised its growth outlook to 1.1% for 2020 citing an improved trade outlook and strong domestic demand. Government investment spending will also increase by a third compared to the previous parliament. The recent signs of rebound seen in the Eurozone continued this morning with Germany, France and Italy registering sequentially improving manufacturing PMI figures. (chart above)

 

 

Value

1 week

YTD

Equity Indices

 

 

 

S&P500

3,226

-0.56%

-0.16%

FTSE JSE All Share

56,096

0.32%

-1.76%

Stoxx50

3,645

-0.90%

-2.68%

FTSE100

7,315

-1.38%

-3.08%

DAX

13,000

-1.54%

-1.87%

CAC40

5,813

-0.83%

-2.74%

SMI Index

10,604

-0.68%

-0.13%

FTSE MIB

23,267

-0.65%

-1.03%

Shanghai Comp

2,747

-7.72%

-9.95%

BSE Sensex

39,872

-3.02%

-3.25%

Nikkei

22,972

-1.59%

-2.89%

Major currencies

 

 

 

USDZAR

14.95

2.37%

6.83%

EURUSD

1.11

0.50%

-1.24%

GBPUSD

1.31

0.20%

-1.36%

USDCHF

0.96

-0.58%

-0.41%

EURCHF

1.07

-0.08%

-1.64%

GBPZAR

19.54

2.58%

5.32%

EURGBP

0.85

0.30%

0.18%

USDAUD

1.49

0.93%

4.82%

Dollar Index

97

-0.31%

1.45%

 Commodities 

 

 

 

Brent

56.12

-5.26%

-14.85%

WTI Oil

 51.39

-3.18%

-15.74%

Copper

2.53

-2.66%

-9.65%

Platinum

956.65

-3.50%

-1.57%

Sugar

14.54

2.32%

8.35%

Corn

379.12

-0.36%

-2.23%

Gold

1,583.40

0.38%

3.96%

 Sovereign Yields

 

 

 

US10Y

1.53

-5.00%

-20.22%

UK10Y

134.99

-0.11%

2.72%

Germany10Y

-0.44

13.77%

134.22%

 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 repor
 

 



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