Financial News 10th June 2024

Market overview
The FTSE/JSE All Share closed last week at 76 851.75, up 0.19%. The consumer discretionary and technology sectors were the biggest contributors, increasing by 4.43% and 3.02% during the week. The basic material and oil & gas sectors were the biggest detractors, decreasing by 3.55% and 3.18% during the same period.
Looking at the MSCI indices, developed markets increased by 1.01% during the week while emerging markets increased by 2.36% over the same period.

SA business confidence improves
The RMB/BER business confidence index in South Africa rose to 35 in Q2 2024, the highest level in over a year, from 30 in the previous quarter. This suggests a slight reduction in business pessimism after two consecutive quarters of declines, primarily due to the suspension of load shedding for two months.

SA growth slightly below expectations
South Africa’s economy recorded a small contraction in the first quarter of 2024, following an upwardly revised 1.4% growth in the previous period and slightly below market estimates of a 0.6% increase. Six out of 10 industries tracked by Statistics South Africa contracted in the first three months of the year, led by construction and mining which declined 3.1% and 2.3% respectively. Consumer spending also made a dent in first-quarter growth, as final consumption expenditure contracted by 0.3%.

Eurozone cuts interest rates 
The European Central Bank (ECB) cut interest rates by 0.25% in June, as expected, ending nine months of stable rates after inflation fell by more than 2.5% since September 2023. Domestic price pressures, on the other hand, remain high, implying that inflation will persist. To address this, the Council aims to keep policy rates sufficiently restrictive, utilizing a data-dependent approach.

Thanks to PPS Investments for the weekly Market overview.

What you need to know about South Africa’s new retirement system
South Africa is getting a new two-pot retirement system in September, but several considerations must be considered. For more clarity, read the full Businesstech article here>

Gold steady as traders await Fed policy meeting
Gold prices held steady on Monday after a sharp sell-off in the previous session on stronger-than-expected US jobs data, with investors awaiting the Federal Reserve policy meeting this week for further direction. Read the full BusinessDay article here>

South African rand treads water as unity government talks continue
The South African rand was steady in early trade on Monday, as investors looked for more clarity from talks between political parties on forming a government of national unity in the country. Read the full article here>

European stocks slump after European vote, shock French election
European stock markets fell Monday, weighed by the results from the European Parliament election, which showed gains for nationalist and euro-sceptic parties. Read the full article here>

Oil inches higher on hope for summer driving demand
Oil prices edged up on Monday on the hope of rising fuel demand this northern summer, despite being weighed down by a firmer dollar, as the expectation of interest rate cuts were pushed out further after strong US jobs data. Read the full BusinessDay article here>

Need more information? Chat with us