Market overview
The FTSE/JSE All Share closed last week at 87474.50, increasing by 1.77%. The technology and financials sectors were the biggest contributors gaining 3.78% and 2.29% during the week. The industrials and oil & gas sectors were the biggest detractors declining by 5.15% and 0.40% over the same period.
Looking at the MSCI indices, developed markets decreased by 0.09% during the previous week, while emerging markets increased by 1.40% over the same period.
Euro area inflation edges higher
The annual inflation rate in the Euro Area edged up to 2.5% in January 2025 from 2.4% in December, slightly above market expectations of 2.4%. It was the highest inflation rate since July 2024, driven primarily by a sharp acceleration in energy costs. The core inflation rate, which excludes volatile food and energy prices, remained unchanged at 2.7% for the fifth consecutive month, slightly above market forecasts of 2.6% but still at its lowest level since early 2022.
Rate cut for the UK
The Bank of England cut its benchmark Bank Rate by 25bps to 4.5% in its February 2025 decision, making it the third rate cut since the start of its cutting cycle in August last year. The Bank maintained its stance that monetary easing is expected to be gradual this year, as mounting growth concerns weigh against stubborn levels of underlying services inflation
Meanwhile, the Bank revised its growth forecasts for the current year as economic activity has already underperformed expectations from November, indicating a dovish shift in the risk balance between growth and higher prices in the near term.
US Job data below expectations
The US economy added 143 000 jobs in January, well below an upwardly revised 307 000 increase in December and forecasts of 170 000. The US unemployment rate dipped by 0.1 percentage point to 4.0% in January 2025, marking its lowest level since May and coming in just below market expectations of 4.1%.
Thanks to PPS Investments for the Market Overview.
Financial Indicators by Sharedata.co.za
South African rand weakens on Trump’s new tariff threats
South Africa’s rand weakened early on Monday in the wake of U.S. President Donald Trump announcing fresh tariff plans, adding to worries over a global trade war. Read the full Marketscreener.com article here>
Fuel tax warning for South Africa
Experts at Deloitte believe fuel taxes will increase, adding another potential price pressure for cash-strapped South Africans. Responding to questions from BusinessTech, Momohlwa Mohlola, an Associate Director from Deloitte’s Corporate Tax Sector, predicted that fuel levies could be increased at the 2025 Budget Speech. Review the Businesstech article here>
Oil climbed as traders mull US tariffs
Oil prices ticked higher on Monday even as investors weighed US President Donald Trump’s latest tariff threat, this time on all steel and aluminium imports, which could dampen global economic growth and energy demand. Read the full BusinessDay article here>
Dollar firms on tariff threats, stocks shrug and post gains
The dollar edged higher on Monday after U.S. President Donald Trump warned more tariffs were imminent including on steel and aluminium, although U.S. futures and European stocks shrugged off the looming levies and rose. Read the full Reuters article here>
Asian shares undecided as more tariffs loom
Asian shares dithered and the dollar edged higher on Monday after US President Donald Trump warned more tariffs were imminent including on steel and aluminium, an inflationary move that could limit the scope for rate cuts. Read the BusinessDay report here>