Market overview
The FTSE/JSE All Share closed last week at 81 686.50, increasing by 1.10%. The technology and oil & gas sectors were the biggest contributors gaining 4.44% and 1.63% respectively during the week. The telecommunication and basic Materials sectors were the biggest detractors, decreasing by 0.81% and 0.53% respectively during the same period.
Looking at the MSCI indices, developed markets increased by 1.31% during the previous week while emerging markets increased by 1.82% over the same period.
US inflation outlook improves
The annual inflation rate in the US fell for a third straight month to 3% in June 2024, the lowest since June 2023, compared to 3.3% in May and below forecasts of 3.1%. Meanwhile, annual core inflation also slowed to 3.3%, a fresh low since April 2021, from 3.4% in May and forecasts it would remain steady. The monthly rate edged down to 0.1% from 0.2%, below expectations of 0.2%. Markets reacted positively to the data as it boosts the likelihood of interest rate cuts in the short to medium term
Chinese growth disappoints
The Chinese economy expanded an annual 4.7% in Q2 of 2024, missing market forecasts of 5.1% and slowing from a 5.3% growth in Q1. It was the weakest yearly advance since Q1 of 2023, amid a persistent property downturn, weak domestic demand, falling yuan, and trade frictions with the West. The latest figures came as the communist party began the Third Plenum, a key political event in which various reform measures are likely to be launched, along with recommendations for more support action to boost recovery.
Thanks to PPS Investments for the weekly Market Overview.
South African rand slips as attack on Trump dents risk appetite
The South African rand weakened against the dollar on Monday, as the assassination attempt on former U.S. president Donald Trump dented appetite for riskier assets and spurred safe-haven demand. Read the full Reuters report here>
Global markets ramp up the ‘Trump trade’ after rally attack
As world financial markets started to reopen after the attempted assassination of Donald Trump, one thing seemed likely: The Trump trade will get even more momentum. Read the full Moneyweb.co.za article here>
Investors are betting big on South Africa
Institutional investors remain positive on South Africa’s equity market as the economy looks set for a large boom. Read the full Businesstech article here>
Political uncertainty in US and Middle East support oil
Oil regained ground on Monday, with political uncertainty in the US and the Middle East supporting prices, offsetting downward pressure from a stronger dollar and weak demand in top importer China. Read the full BusinessDay article here>
Dollar rises with crypto as markets turn in favour of a Trump victory
The dollar rose broadly on Monday and cryptocurrencies jumped as trades for a victory by Donald Trump in the upcoming U.S. elections gathered steam in the wake of an attempted assassination of the former U.S. President. Read the full Investing.com article here>
Gold hardly changed as traders await rate path clues
Gold prices were little changed on Monday, as investors awaited comments from Federal Reserve officials and economic data for further cues on the trajectory of US interest rates. Read the full Business Day article here>