Financial News 15th April 2024

Market overview
The FTSE/JSE All Share closed last week at 75 311.75, increasing by 1.08%. The basic materials and oil & gas sectors were the biggest contributors, increasing by 10.14% and 8.62% respectively during the week. The telecommunication and consumer discretionary sectors were the biggest detractors, decreasing by 5.39% and 3.20% during the same period.
Looking at the MSCI indices, developed markets decreased by 1.47% during the previous week while emerging markets decreased by 0.34% over the same period.

SA business confidence improves
The South African Chamber of Commerce and Industry (SACCI) business confidence index reached a one-year high of 114.7 in March. The latest reading pointed to stabilization at an improved level despite various local economic challenges faced by businesses. SACCI stated, “Positive international economic and business relations, along with increased year-on-year inward tourism, have played pivotal roles in maintaining business confidence.”

US inflation remains sticky
The annual inflation rate in the US increased for a second straight month to 3.5% in March, the highest since September, compared to 3.2% in February and forecasts of 3.4%. Meanwhile, annual core inflation remained steady at 3.8%, unchanged from the previous month, and above forecasts of 3.7%. The increase has further dampened hope for multiple interest rate cuts in 2024 in the US. South Africa is likely to wait for cuts in the US before implementing any interest rate cuts locally.

Euro rates remain unchanged
The European Central Bank maintained interest rates at record-high levels for a fifth consecutive time during its April meeting. The ECB also said it may consider reducing the level of policy restriction, if it becomes more confident that inflation is moving steadily toward the 2% target. Officials also acknowledged that inflation has continued to decline, with most indicators of underlying inflation and wage growth easing. However, they cautioned that domestic price pressures remain strong, resulting in high services price inflation.

Thanks to PPS Investments for the weekly Market Overview.

JSE weaker as traders watch Middle East developments
The JSE was weaker on Monday morning, while global peers were mixed as investors paid close attention to the developments between Israel and Iran. Read the full BusinessDay article here>

SA financial markets face perfect storm as volatile geographic tensions brew
Local financial markets may find themselves facing a perfect storm in the months to come. Read the full article from IOL Business Report here>

Oil steadies, stocks gain as Iran tensions ease: Markets wrap
Global markets showed signs of stability and oil prices declined as traders wagered tensions in the Middle East won’t escalate after Iran’s attack on Israel over the weekend. European stocks and US equity index futures gained. Read the full Moneyweb article here>

Here is the expected petrol price for May
Mid-month data from the Central Energy Fund (CEF) shows that motorists in South Africa can expect a mixed bag for fuel prices in May. Read the full BusinessTech article here>

Gold climbs toward record
The precious metal broke through $2 400 an ounce on Friday, but closed the session lower as technical indicators indicated its rally had run too hot and investors liquidated positions. Read the full Moneyweb article here>

Need more information? Chat with us