TRADEWISE REPORT - 6 October 2014 The Nikkei Index slipped on Friday on the back of the sharp decline on European markets which limited investor risk appetite, while growth in Chinas services sector also hurt sentiment, but index-heavyweight Fast Retailing gained after reporting strong monthly sales. The Hang Seng Index reopened on Friday after being closed for a two day public holiday by dropping to a 4½-month low after investors sold-off shares on the back of the continuing civil unrest in the city, as well as the gloomy economic news out of mainland China. Reuters reports that European markets fell sharply on Thursday, with Italys FTSE MIB share index putting in its biggest daily percentage drop in 19-months, after the ECB provided investors with little detail with regards to its plans to buy secured debt by not confirming the size of purchases. According to Reuters, U.S. markets closed almost unchanged in choppy trading on Thursday with energy shares recovering from the previous session’s losses, while investors also seemingly set aside concerns over weak economic growth and expensive valuations to buy beaten-down shares, especially in the small cap sector. Business Day reports that the JSE All Share Index dropped a further 1.40% on Thursday, having lost 7.7% since its record high reached the end of July, with resources shares continuing to lead the decliners, while global equity markets were disappointed by the stimulus measures announced by ECB president Mario Draghi with the general sentiment that it would have little effect. The Rand traded in a narrow range late yesterday after the ECB’s decision to keep interest rates unchanged failed to motivate any major reaction on world currency markets. The Rand was last trading at R11.2022 against the U.S. Dollar, with the Euro quoted at R14.1702, while trading at R18.0476 against the British Pound. The gold price continues to be hurt by a stronger US Dollar, while the platinum price slumped to a five-year low. Gold was last trading at $1,211.06, with the platinum price quoted at $1,241.50, while palladium is trading at $760.10. Brent crude oil hit its lowest level since June 2012 on Thursday, extending a three-month long decline on the back of a global oversupply, as well as concerns over low demand. Brent was last trading at $93.90 a barrel.
Posted on: Mon, 06 Oct 2014 05:36:17 +0000
Trending Topics
Recently Viewed Topics
© 2015