Market overview
The FTSE/JSE All Share closed last week at 108 846.40, decreasing by 0.36%. The oil and gas sector was the biggest contributor increasing by 4.14% during the previous week, while the telecommunication sector lost the most ground, decreasing by 4.21%.
Looking at the MSCI indices, developed markets decreased by 1.47% during the previous week, while emerging markets decreased by 1.39% over the same period
Drop in SA manufacturing
South Africa’s seasonally adjusted Absa Purchasing Managers’ Index (PMI) fell to 49.2 in October from 50.8 in the previous month, indicating that the country’s factory activity has returned to contraction. Meanwhile, the South African government is looking to persuade US President Donald Trump to reduce the 30% tariff imposed on South African exports to the US in August, however, no progress has been made so far.
US Consumer sentiment declines
The University of Michigan’s consumer sentiment index fell to 50.3 in November, down from 53.6 in October and below expectations of 53.2, as shown by preliminary estimates. The reading marked the second lowest on record, slightly above the June 2022 low, as Americans grew increasingly concerned about the potential economic fallout from the longest US government shutdown in history.
Chinese inflation turns positive
China’s consumer prices rose 0.2% year-on-year in October, defying expectations for no change and rebounding from a 0.3% decline in the previous month. It was the first increase in consumer inflation since June and the fastest pace since January. On a monthly basis, consumer prices also increased 0.2%, following a 0.1% gain in September, reaching the highest level in three months.
Thanks to PPS Investments for the weekly Market Overview
Financial indicators by Sharedata.co.za
South African rand gains against weaker dollar; budget review week’s focus
The South African rand gained against a softer dollar in early trade on Monday, with the finance minister’s mid-year budget review the week’s main focus. See the full cnbcafrica.com article here>
South Africa’s fiscal outlook brightens slightly ahead of 2025 MTBPS
Finance Minister Enoch Godongwana is expected to deliver a cautiously optimistic Medium-Term Budget Policy Statement (MTBPS) on Wednesday, showing stronger revenue collection, contained expenditure growth, and a smaller-than-expected deficit, even as sluggish growth and high debt remain major fiscal challenges. Read the full article on IOL Business report here>
Fed rates hopes push gold higher
Gold prices rose more than 1% on Monday, buoyed by the expectation of another Federal Reserve interest rate cut in December and a slew of weak economic data that raised global slowdown worries. See the full BusinessDay article here>
Oil Climbs for a second day on risk-on tone in wider markets
Oil rose as wider markets were lifted by a push to end the US government shutdown, with crude traders also looking toward a data-heavy week that’ll yield insights into whether a global glut is forming. See the full MOneyweb.co.za article here>
Markets surge amid hopes of end to US government shutdown
European stocks rallied at the start of the new trading week as a late test vote in the Senate on Sunday raised expectations for a bipartisan deal to fund the government, lifting investor sentiment across regions. See the full Euronews article here>