Market overview
The FTSE/JSE All Share closed last week at 72 990.69, decreasing by 0.99%. The technology and health care sectors were the biggest contributors, increasing by 3.05% and 1.26% respectively during the week. The oil & gas and financial sectors were the biggest detractors, decreasing by 9.71% and 2.62% during the same period.
Looking at the MSCI indices, developed markets decreased by 0.14% during the previous week while emerging markets increased by 0.21% over the same period.
SA manufacturing surprises
Manufacturing production increased by 2.6% year-on-year in January 2024, beating market estimates of a 0.7% growth. On a monthly basis, industrial output rebounded by 0.8% in January, ahead of market estimates of a 0.5% rise.
US inflation remains sticky
The annual inflation rate in the US unexpectedly increased to 3.2% in February 2024, compared to 3.1% in January and above forecasts of 3.1%. Meanwhile, the monthly inflation rate increased to 0.4% from 0.3%, with prices for shelter and gasoline contributing over 60% of the increase. Interest rate cuts will likely only start coming down when inflation moderates further in the US.
Uptick in Chinese production
Annual China’s industrial production expanded by 7.0% in February 2024, beating market estimates of a 5% increase. It was the fastest expansion in industrial output in almost two years, boosted by robust activities in manufacturing and utilities.
Thanks to PPS Investments for the weekly Market Overview.
South African rand slips ahead of CPI, central bank meetings
South Africa’s rand weakened in early trade on Monday, at the start of a week that will include South African inflation figures and several major central bank rate decisions. Read the full Nasdaq.com article here>
What to expect for interest rates in South Africa next week
Experts expect the Monetary Policy Committee (MPC) to hold interest rates next week, but persistent inflation risks mean some have pushed their first-rate cut expectations further back towards the end of the year. Read the full Businesstech article here>
Oil inches higher on expectation of more strikes on Russian refineries
Oil prices ticked up in Asian trade on Monday, extending gains from last week when prices rose nearly 4% on the view that supply was tightening, with the risks heightened by further attacks on Russian energy infrastructure. Read the full Businessday article here>
Top 5 things to watch in markets in the week ahead
Central bank decisions will be front and center in what’s set to be an action-packed week as investors attempt to gauge how close the Federal Reserve is to cutting rates. The Bank of Japan appears to be shaping up to exit negative interest rates after months of anticipation. Meanwhile, AI darling Nvidia (NASDAQ:NVDA) is to hold a closely watched developer conference. Read the full Investing.com article here