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US raises tariffs on $200 billion worth of Chinese goods from 10% to 25%

09 May 2019

US raises tariffs on $200 billion worth of Chinese goods from 10% to 25%

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Market commentary

SA flag Icon
South Africa

The JSE was closed due to the national and provincial elections.

US flag Icon
United States

Wall Street extend a two-day losing streak on Wednesday as investors expressed their concerns over the outcome of the infamous US-Sino trade negotiations. At 17h30, the Dow futures had lost over 0.10%.

EU flag Icon
Europe

European shares inched upwards on Wednesday despite sharp declines in Asia and on Wall Street, where the sectors susceptible to trade conditions were hard hit by the unexpected tariff hike on $200 billion worth of Chinese goods. At 17h30, the pan-European Stoxx 600 gained 0.02%.

HK flag Icon
Hong Kong

Hong Kong shares traded lower on Wednesday as poor trade data from China and fears of an escalation in the US-China trade war prompted investors to shy away from riskier assets. The Hang Seng ended the day 1.23% in the red.

Japan flag Icon
Japan

Japan’s Nikkei fell to a five-week low on Wednesday as on-going trade tensions weighed heavily on the markets and a firm yen dragged exporters through the mud. At 17h30, the Nikkei lost 1.46%.

Rand Icon
Rand

The local currency remained stagnant in a tight range as the elections took place on Wednesday, with investors keeping a close eye on the outcome. At 17h40, the rand traded at R14.35 against the dollar.

Precious metals Icon
Precious metals

Gold prices peaked at a one-week high on Wednesday as fresh concerns over the US-China trade dispute and the effect thereof on global growth reduced risk sentiment, pushing investors towards safe-haven assets such as bullion. At 17h40, spot gold was up trading at $1 288.43 an ounce.

Oil Icon
Oil

Oil prices steadied on Wednesday as tighter global supply somewhat eased concerns over the escalating US and China trade war, this after Washington increased tariffs on $200 billion worth of Chinese goods to 25%. At 17h45, a barrel of Brent crude was trading at $70.41.


Market indicators

Local markets (R)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
ALSI 58 043.60 - 1.12 0.84 9.12 7.91 3.65
Gold mining 1 419.90 0.82 - 7.72 - 2.09 27.90 31.05
Basic minerals 32 202.71 - 0.60 - 5.78 8.58 13.44 24.39
Industrial index 78 818.19 - 1.46 3.04 12.42 8.68 - 3.02
Financial 43 264.51 - 0.95 3.91 3.82 1.56 - 0.08
Fin + Ind 30 7 926.05 - 1.29 3.33 9.35 6.16 - 2.06
International markets (Base currency)
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Dow Jones (USD) 25 967.33 0.01 - 1.35 3.88 0.20 9.09
S&P 500 PR (USD) 2 879.42 - 0.16 - 0.46 6.81 3.60 9.94
NASDAQ (USD) 7 943.32 - 0.25 - 0.09 9.10 6.03 10.51
FT-100 (GBP) 7 271.00 0.15 - 2.11 4.49 4.05 0.36
Hang Seng (HKD) 29 003.20 - 1.23 - 3.55 4.19 11.19 - 1.28
Nikkei 225 (JPY) 21 602.59 - 1.46 - 0.73 7.18 - 2.88 - 2.01
Paris CAC (EUR) 5 417.59 0.40 - 0.75 9.61 6.24 0.06
Frankfurt (EUR) 5 524.04 0.72 1.81 11.67 5.66 - 5.67
Other markets
Index Current level 1 Day move 1 Month move 3 Month move 6 Month move 1 Year move
Gold ($) 1 282.75 0.89 - 0.59 - 1.94 3.74 - 2.14
Platinum ($) 871.00 - 0.68 - 4.39 9.56 0.00 - 4.18
Brent Oil ($) 69.88 - 1.91 - 0.65 13.39 - 3.04 - 8.26
Rand/USD 14.39 -0.15 -1.87 -5.46 -0.73 -14.24
Rand/GBP 18.72 -0.17 -1.32 -5.90 -1.32 -9.81
Rand/EUR 16.11 -0.13 -1.18 -4.05 0.46 -7.86
ALBI (R) 661.31 0.02 - 0.25 1.62 7.06 6.18
  1. Some data may be delayed, the above table reflects the latest available information
  2. Performance reported during the first week of each month may be impacted by distributions. Distributions are fully accounted for by the second week of each month


Economic calendar

Local International
  1. ZA: Manufacturing Production MAR
  1. CH: Inflation Rate APR
  2. US: Exports/Imports MAR

Source: Reuters, Business Day, Trading Economics


PSG Product Matrix

Fund matrix

PSG Wealth Solutions
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Enhanced Interest D 3.96 7.97 8.01 8.10 7.88 7.53
PSG Wealth Income FoF D 4.18 7.56 7.91 8.33 8.13 8.16
PSG Wealth Preserver FoF D 4.53 6.21 6.30 6.30 6.47 7.48
PSG Wealth Moderate FoF D 5.11 5.16 5.78 5.80 5.56 7.15
PSG Wealth Creator FoF D 6.01 3.62 5.19 5.93 3.65 5.59
PSG Wealth Global Moderate FF D 6.51 16.04 8.09 4.66 6.80 8.68
PSG Wealth Global Creator FF D 11.02 24.60 15.18 11.72 13.20 -
PSG Wealth Solutions ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Moderate FoF D 5.07 1.67 3.82 4.88 1.73 1.97
PSG Wealth Global Creator FoF D 8.80 9.30 10.46 11.78 7.89 7.55
PSG Wealth Global Preserver FoF (USD) D 4.46 4.17 3.20 4.67 3.40 3.44
PSG Wealth Global Flexible FoF (USD) D 8.68 9.79 9.26 10.79 7.64 6.94
PSG Wealth Solutions (£)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth Global Preserver FoF (GBP) D 3.02 6.02 2.49 7.17 6.19 6.73
PSG Wealth Global Flexible FoF (GBP) D 7.10 12.78 7.37 13.42 10.49 11.50
PSG Asset Management
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Money Market A 3.56 7.27 7.38 7.45 7.26 7.05
PSG Income A 4.29 8.11 8.30 8.49 8.15 7.85
PSG Diversified Income 3.68 6.64 7.52 7.93 7.82 7.70
PSG Stable A 1.10 2.48 5.41 6.31 6.22 6.94
PSG Balanced A - 2.36 - 1.19 3.26 5.28 4.61 6.60
PSG Flexible A - 1.83 - 0.31 3.81 5.86 5.62 7.49
PSG SA Equity D - 4.62 - 10.18 - 0.62 3.59 - -
PSG Equity A - 4.07 - 4.23 1.56 5.65 2.76 5.12
PSG Global Flexible FF A - 2.34 8.33 4.50 5.31 6.72 -
PSG Global Equity FF A - 3.22 7.32 4.87 6.75 6.61 7.89
PSG Asset Management ($)
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Global Flexible USD A - 2.30 - 4.56 1.42 6.61 2.25 2.14
PSG Global Equity USD - 3.01 - 5.02 1.94 8.16 2.15 1.95
PSG Direct Portfolios
Fund 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Direct Flexible Income 3.75 6.98 7.42 7.68 7.44 7.22
PSG Direct Low Equity 0.56 1.95 4.85 5.90 5.68 6.53
PSG Direct Managed - 2.45 - 1.42 2.93 4.95 4.39 6.34
PSG Direct Aggressive - 2.73 0.03 3.00 5.41 4.77 -
PSG Direct Global Managed - 2.56 7.84 4.02 4.83 6.23 -
PSG Direct Global Aggressive - 3.10 7.22 4.26 5.74 6.18 -
  1. The PSG Wealth Solutions are exclusively available through registered PSG planners and/or advisers
  2. The above information reflects the latest available data at time of distribution, as such product performance data reflects T-2 numbers
  3. Performance reported during the first week of each month may be impacted by distributions. Distributions are fully accounted for by the second week of each month
  4. The PSG Best Ideas Portfolios were renamed to the PSG Direct Portfolios in February 2018

Equity portfolio matrix

PSG Wealth House View Portfolios
Portfolio 6 Month move 1 Year move 2 Year move 3 Year move 4 Year move 5 Year move
PSG Wealth SA Equity Portfolio 0.39 -3.80 2.87 5.11 - -
PSG Wealth SA Property Equity Portfolio -7.43 -9.83 -4.47 -3.79 - -
PSG Wealth SA Dividend Income Equity Portfolio 0.33 -5.66 6.44 6.4 - -
PSG Wealth Offshore Equity Portfolio (USD) 4.06 9.01 12.97 14.02 - -
PSG Wealth Managed Volatility Equity Portfolio -3.68 -10.22 -2.66 - - -
  1. The PSG Wealth equity portfolios are exclusively available through registered PSG planners and/or advisers
  2. PSG Wealth equity portfolio performance are shown gross of management fees, but net of brokerage and other trading costs
  3. PSG Wealth SA and Offshore Equity Portfolio Inception date: 30 August 2015
  4. PSG Wealth SA Listed Property Portfolio Inception date: 1 December 2015
  5. PSG Wealth Dividend Income Equity Portfolio Inception date: 29 April 2016
  6. PSG Wealth Managed Volatility Equity Portfolio Inception date: 28 July 2016
  7. PSG Wealth Funds are exclusively available through registered PSG planners and/or advisers


Recent Investment Ideas

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Highlights

  • We recommend an underweight positioning for HEIA NA; click here to read the full report
  • New product innovations such as low and non-alcoholic extensions to the Heineken brand is a growth prospect, although the threat of it cannibalising other brands within the portfolio is present.
  • We believe the share is fully valued at current levels, trading at a forward P/E of 20.83 times, one standard deviation away from its average forward P/E of 19.47 times.


company logo

Highlights

  • We recommend an overweight positioning for DGE LN; click here to read the full report
  • The group has a strong portfolio of brands, a global footprint and structural growth tailwinds as it focuses on the premiumisation of its brands.
  • As such, the medium-term outlook for organic revenue growth remains positive.


company logo

Highlights

  • We recommend an overweight positioning for TRU SJ; click here to read the full report
  • Return on equity has been under pressure given top-line growth that has been muted given the challenging macro environment.
  • Stronger top-line growth remains the group’s greatest challenge and is largely influenced by economic activity and merchandise inflation.


Corporate actions

Date Company Share code Expectation
15 May 2019 Atlantic Leaf Properties Limited ALP Cash Dividend
15 May 2019 Global Asset Management Limited GAM Mandatory Offer
15 May 2019 Indequity Group Limited IDQ Cash Distribution
15 May 2019 Investec Bank (Mauritius) Limited IMRP7 Cash Dividend
15 May 2019 Master Drilling Group Limited MDI Cash Dividend
15 May 2019 PSG Group Limited PSG Cash Dividend
15 May 2019 Vivo Energy Plc VVO Cash Dividend
  1. The information above is to the best of our knowledge correct at the time of distribution but due to the nature thereof cannot be guaranteed.
  2. This document only contains general information and not the opinion of the distributor.

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Author
author

Adriaan Pask PhD

Chief Investment Officer


At PSG Wealth
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