Market Overview
The FTSE/JSE All Share closed last week at 88 570.19, increasing by 3.09%. The basic materials and technology sectors were the biggest contributors gaining 11.42% and 8.68% during the week. The consumer discretionary and oil and gas sectors were the biggest detractors declining by 4.78% and 2.89% over the same period.
Looking at the MSCI indices, developed markets decreased by 1.67% during the previous week, while emerging markets increased by 2.89% over the same period.
Business confidence remains strong
The RMB/BER business confidence index in South Africa remained unchanged at 45 in Q1 2025, the highest level in nearly three years, following three consecutive increases. This reading is slightly above the long-term average of 43 and well above the sentiment levels seen at the start of last year.
Inflation and interest rates down in the Euro area
The annual inflation rate in the Euro Area eased to 2.4% in February 2025, down from a six-month high of 2.5% in January but slightly above market expectations of 2.3%. The ECB lowered the three key interest rates by 25 basis points, as expected, reducing the deposit facility rate to 2.50%, the main refinancing rate to 2.65%, and the marginal lending rate to 2.90%. This decision reflects an updated assessment of the inflation outlook and monetary policy transmission.
China's deflation struggle continues
China's consumer prices dropped by 0.7% year-on-year in February 2025, surpassing market estimates of a 0.5% decline and reversing a 0.5% rise in the previous month. This was the first consumer deflation since January 2024, amid fading seasonal demand following the Spring Festival in late January.
Thanks to PPS Investments for the weekly Market Overview
Financial Indicators by Sharedata.co.za
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SA markets stand firm as Trump tariffs shake global economy
Despite negative market sentiment on most global equity and exchange rate markets last week, following the implementation of tariffs by US President Donald Trump, the Rand and the JSE stood their ground. Read the full IOL Business Report commentary by Chris Harmse here>
Petrol price warning for South Africa
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Oil slips amid tariff uncertainty
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Dollar steadies after slump; euro retreats after weekly gains
The U.S. dollar edged higher Monday, bouncing off its lowest level in four months, but remained under pressure given the ongoing concerns that the Trump administration’s trade policies will hit economic activity in the world’s largest economy. Read the full Investing.com article here>