Market strength is expected to continue this week

Wealth

Market strength
is expected to continue 

 

Over the past week, markets were supported by a flood of good news. Hopes for a ceasefire in the US-China trade war and optimism over the possibility that a Brexit deal could be struck before the end of the month boosted global equity markets towards the latter part of the week. 

Over the past week, markets were supported by a flood of good news. Hopes for a ceasefire in the US-China trade war and optimism over the possibility that a Brexit deal could be struck before the end of the month boosted global equity markets towards the latter part of the week. 

Investors anticipate concessions on the part of US and Chinese trade negotiators that could forestall the implementation of two rounds of US tariff hikes scheduled to take effect on 15 October and 15 December. Potential areas of agreement include increased Chinese purchases of US agricultural products, a pact on currency management and looser restrictions on US technology firms’ sales to China’s Huawei. Following the meeting between the leader of the Chinese delegation, Vice Premier Liu He, and US President Donald Trump at the White House, Trump tweeted that he is optimistic about the outcome of negotiations. Despite elevated hopes for an interim agreement, major differences stand in the way of a comprehensive deal, i.e. US opposition to subsidies to favoured Chinese industries.

After what was described as a constructive meeting, British Prime Minister Boris Johnson and Ireland see a path to a Brexit agreement and continue to believe a deal is in everyone’s interest. The parties agreed to reflect further on their discussion and to engage intensively. Talks have moved to Brussels, where Brexit Secretary Steve Barclay met with the EU’s chief negotiator, Michel Barnier, and the two sides agreed to intensify negotiations. 

The positive news out of the US, along with the Brexit negotiations, changed the sentiment on global markets and the appetite for risk returned. Almost all the markets closed the week higher. Locally, the JSE closed 2.95% higher, supported by a stronger currency. The ZAR gained 1.75% against the USD to trade at around R14.77. The rand was the strongest emerging market currency the past week, which indicates that international investors support current reforms by the SA government, although those would seem a tat slow. 

Market strength is expected to continue this week as investors mull over the good news of the past week.


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SECURITAS – Wealth Management






























Market data provided by I-Net | News article provided by Securitas with 4D Wealth

Fanie WassermanB. Com (Hons)(UJ), PDFP (UOVS), CFP®fanie@securitas.co.za
Johan SteynRFP®082 680 9510johan@securitas.co.za
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