The year is looking bright from this angle. Global investor sentiment strengthened and took well to the news that trade tariff deadlines were postponed, and that a second US shutdown would not follow the first
Local markets were aided by the positive global market sentiment, and the ALSI increased almost 3% on the back of positive returns from the big four banks, with financial services returning 7% overall.
While emerging markets wobbled alongside global markets during December, the MSCI Emerging Market Index fared better than the MSCI World Index. But, over half the JSE’s stocks have entered the bear market space and investors gained little from the virtually non-existent “Santa Rally”.
Global markets started the month hesitantly in anticipation of the US midterm elections. This, alongside the trade sanctions posed on Iran and Trump’s continued criticism of the Fed increasing interest rates, contributed to investors’ unease. And, the technology sector fell again later in November, led by a decline in the Apple share price. The decline allowed Microsoft to overtake the former giant as the world’s most valuable company.
Home / Market review: October 2018
Market review: October 2018
By Sanlam Investments| 11 November 2018
World markets faced turbulent times throughout October, with an estimated loss of $2 trillion. The month started positively, in reaction to optimistic NAFTA trade talks between the three major North American countries: US, Mexico and Canada. The Dow Jones did well as a result, with big manufacturing names such as Boeing stocks seeing increases.
The US economy enjoyed relief from subdued trade disputes, which served to increase investor optimism. While the United States followed through with $200 billion in new tariffs initiated in August, negotiations neutralised after China responded in turn with a 10% tariff on imports. US technology and mining sectors came under scrutiny midmonth but Apple’s latest product campaign created bigger ripples in the media than the stock market. The same could not be said for Tesla stocks, which dropped over 10% after the SEC’s accusation of securities fraud against Elon Musk.
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