Market overview
The FTSE/JSE All Share closed last week at 91 861.19, decreasing by 0.46%. The basic materials and technology sectors were the biggest contributors increasing by 2.50% and 0.13% respective during the previous week. Looking at the MSCI indices, developed markets decreased by 0.29%, while emerging markets increased by 0.49% over the same period.
SA manufacturing drops
South Africa’s manufacturing production fell by 0.8% year-on-year in March 2025, following a 3.2% slump in February. This marked the fifth consecutive month of declines in industrial activity, although it was the mildest in the sequence. On a seasonally adjusted monthly basis, manufacturing output shrank by 2.2% in March, after an upwardly revised 0.7% rise in the previous month. Industrial output decreased by 2.3% in the first quarter of 2025 compared with the fourth quarter of 2024
US rates on hold
The Federal Reserve kept US interest rates at 4.50% for a third consecutive meeting in May 2025, in line with expectations, as officials adopt a wait-and-see approach amid concerns that President Trump’s tariffs could drive up inflation and slow economic growth. Policymakers noted that uncertainty about the economic outlook has increased further and that the risks of higher unemployment and higher inflation have risen. The Fed also stated that although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace.
Thanks to PPS Investments for the weekly Market Overview.
Financial Indicators by Sharedata.co.za
Gold sinks as trade talks, easing tensions impact haven demand
Gold fell as its haven status was impacted by signs of progress in trade talks between the US and China, along with some relief to geopolitical tensions. Read the full Moneyweb article here>
U.S., China agree to substantially lower tariffs
The U.S. and China have agreed to a 90-day pause to soaring tariffs placed on each another and will temporarily lower their respective levies, the two countries announced on Monday. Read the full report on Investing.com here>
Stocks surge, dollar rallies as US and China pledge to slash tariffs
Wall Street stock futures surged, the dollar rallied and gold prices slumped on Monday as U.S. and Chinese officials pledged to slash reciprocal tariffs in a move that swept trade war fears out of global markets, at least for now. Read the latest news from Reuters here>
Chinese Stocks Jump After Agreement with US on Tariff Reductions
Chinese stocks listed in Hong Kong surged after Beijing and Washington agreed to temporarily lower tariffs on each other’s products, the clearest sign yet that an escalating trade war between the world’s two largest economies may be avoided. Read the Bloomberg article here>