Market overview
The FTSE/JSE All Share closed last week at 86 149.44, decreasing by 0.02%. The financials and telecommunication sectors were the biggest contributors gaining 2.07% and 2.01% during the week. The technology and basic materials sectors were the biggest detractors losing 3.01% and 2.03% respectively over the same period.
Looking at the MSCI indices, developed markets decreased by 1.66% during the previous week, while emerging markets decreased by 0.02% over the same period.
SA Manufacturing takes a dip
Annual manufacturing production in South Africa fell by 1.2% in August 2024, following a downwardly revised 1.6% rise in the previous month. Output decreased noticeably for motor vehicles, parts and accessories and other transport equipment, in addition to basic iron and steel. On a seasonally adjusted monthly basis, industrial output fell by 0.6% in August, after a downwardly revised 1.6% increase in the previous month.
China continues to face deflationary risks
China’s annual inflation rate stood at 0.4% in September 2024, below market forecasts and August’s figure of 0.6%. This is the lowest since June highlighting the need for more policy support from Beijing to address growing deflation risks. Core consumer prices, excluding food and energy costs, increased 0.1% year-on-year, the smallest rise since February 2021, after a 0.3% gain in August. Monthly, the CPI was unchanged, compared with consensus and August’s print of a 0.4% rise.
US inflation continues to moderate
The annual inflation rate in the US slowed for a sixth consecutive month to 2.4% in September 2024, the lowest since February 2021, from 2.5% in August. However, figures came above forecasts of 2.3%. On a monthly basis, the CPI rose 0.2%, the same as in August, and above forecasts of 0.1%. Annual core inflation rate unexpectedly edged up to 3.3%, compared to 3.2% in the previous two months while investors were expecting it would stay at 3.2%. The monthly core inflation rate remained at 0.3%, the same as in August but above forecasts of 0.2%.
Thanks to PPS Investments for the weekly Market Overview.
Financial Indicators supplied by Sharedata.co.za
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