Morning Market Investment Commentary Thursday 27th June 2013 US markets continued their bounce last night, up 1%, as the US 10 year bond yield snapped a 7-day losing streak to settle at 2.54%, not far from its recent 2.61% peak. European markets continued their bounce, with their biggest 2-day gain in almost 11 months, partly boosted by German consumer confidence topping forecasts. The JSE rose 1.2% to close at 38,946, despite very weak mining shares, as gold sank to a 3 year low and platinum followed. Anglo American is at its lowest price since 2009, now down 71% in dollars from its 2008 record high… and trading at the same price as 12 years ago in rand terms. The copper price is down 7% this month and 10% this quarter. The US dollar has been stronger of late against most currencies (from $1.34 to $1.30 versus the euro) and today the rand is at 10.11. One suspects that markets have anticipated the worst with regard to our icon, Nelson Mandela, because that’s what markets do (sniff out the future); but of course no-one knows for sure. This is an unprecedented issue in our history. Paul Hansen Director: Retail Investing Stanlib Wealth Management stanlib
Posted on: Thu, 27 Jun 2013 09:51:08 +0000