Financial News 10th July 2023

Market Overview
The FTSE/JSE All Share closed last week at 74 823.02, decreasing by 1.57%. The industrials sector was the biggest contributor increasing by 1.26% during the week. The technology and telecommunication sectors were the biggest detractors decreasing by 5.07% and 3.48% respectively over the same period.

Looking at the MSCI indices, developed markets decreased by 1.39% during the previous week, while emerging markets decreased by 0.60% over the same period.

SA manufacturing under pressure
The Absa Purchasing Managers’ Index fell to 47.6 in June 2023, from 49.2 in May and below market expectations of 48.9. This marks the fifth consecutive month of contraction in manufacturing activity and the steepest since July last year, as business conditions deteriorated further. Absa noted that “a key drag on the sector seems to come from weak demand, with the new sales orders index edging down once again as the decline in export sales deepened and domestic demand remains under pressure.”

Thank you to PPS Investments for the weekly Market Overview.

Rand drifts lower; manufacturing and mining data due this week
The rand drifted lower against the dollar in early trade on Monday, at the start of a week in which local manufacturing and mining data will be released. Read the full Moneyweb article here>

Brace for another interest rate hike this month
Debt-laden consumers in South Africa will be facing yet more hardship as the cost of borrowing looks likely to increase later this month and remain elevated for at least another two months on the back of stubborn consumer inflation. Fead the full IOL article here>

Gold steady as US jobs data fuels rate hike jitters
Gold prices were little changed on Monday after US jobs data last week cast doubts over the labour market’s strength, prompting investors to be more sceptical of the Federal Reserve’s rate hike trajectory. Read the full Business Day article here>

Five key charts to watch in global commodity markets this week
Oil markets are flashing signs of renewed strength amid tightening supplies, while record heat around the world is impacting everything from crops and energy prices to the availability of water. Here are five charts to consider in global commodity markets this week. Read the full Moneyweb article here>

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