Market Overview
The FTSE/JSE All Share closed last week at 80 739.31, increasing by 0.25%. The telecommunications and technology sectors were the biggest contributors gaining 6.46% and 4.54% during the week. The health care and oil & gas sectors were the biggest detractors, decreasing by 3.48% and 1.70% during the same period. Looking at the MSCI indices, developed markets decreased by 0.01% during the previous week, while emerging markets increased by 0.27% over the same period.
SA manufacturing takes a tumble
South Africa’s annual manufacturing production fell by 5.2% in June 2024, following an upwardly revised 1.2% drop the previous month and a greater-than-expected 0.9% decrease. This marked the second consecutive month of falling manufacturing activity. The sectors with the biggest negative contributions were food and beverages (-6%), motor vehicles, parts and accessories, and other transport equipment (-15.6%), basic iron and steel, non-ferrous metal products, metal products, and machinery (-8.4%).
Increase in Chinese Inflation
China’s annual inflation rate increased to 0.5% in July 2024 from 0.2% in June, exceeding market forecasts of 0.3%. It was also the sixth straight month of consumer inflation, as Beijing ramped up stimulus to bolster consumption. Core consumer prices, excluding food and energy costs, rose 0.4% year on year, the lowest in six months. Monthly, the CPI increased by 0.5%, the first increase since April and higher than the expected 0.3%.
Thanks to PPS Investments for the Market Overview.
Market Indicators 12th August 2024 from Sharedata.co.za
Interest rate cuts coming – but there’s a catch
Nedbank has joined a chorus of other industry experts in forecasting 50 basis points of rate cuts for South Africa in 2024. While this will bring much-needed relief for consumers, the cutting cycle will likely be shallower than many may hope. Read the full Daily Investor article here>
World and SA markets recover quickly
Despite huge volatility and uncertainty on global financial markets last week, South African equity, bond and foreign exchange markets remained stable and even improved. Read the full IOL Business Report article here>
Asian stocks inch higher as traders await data
Asian stocks edged higher on Monday as a holiday in Japan removed one source of recent volatility, and investors hunkered down for major US and Chinese economic data for an update on global growth prospects. Read the full BusinessDay article here>
US CPI, retail earnings, UK inflation – what’s moving markets
Wall Street looks set to start the week slightly higher, with the focus on the latest inflation data as investors look for confirmation that the Federal Reserve will start cutting interest rates in September. The quarterly earnings season is coming to an end, but the retail sector will be the main focus in the coming days. Read the full Investing.com article here>
Middle East tension helps oil rise for fifth session
Oil prices rose for a fifth consecutive session on Monday, holding on to last week’s more than 3% gains, as US recession fears eased while geopolitical tension in the Middle East supported prices. Read the full BusinessDay article here>