Market Overview
The FTSE/JSE All Share closed last week at 82 824.44, increasing by 2.58% as global markets rallied on renewed belief that rate cuts in the US are imminent. The telecommunications and financials sectors were the biggest contributors gaining 5.56% and 4.49% during the week. The oil & gas sector was the biggest detractor, decreasing by 6.70%.
Looking at the MSCI indices, developed markets increased by 4.03% during the previous week, while emerging markets increased by 2.84% over the same period.
Big Spike In SA Retail Sales
South Africa’s retail trade climbed by 4.1% over a year ago in June 2024, following an upwardly revised 1.1% rise in the previous month. This marked the fourth consecutive month of increases in retail activity, with the growth rate at its strongest since July 2022.
SA Business Confidence Sees Slight Increase
The South African Chamber of Commerce and Industry (SACCI) business confidence index came in at a four-month high of 109.1 in July 2024, up marginally from 109 in June. This reflects a modest improvement in business sentiment, which had significantly dropped before May’s election but has started to recover with the formation of the coalition government. “The broader representation and accountability in government have created an opportunity for efficient economic expansion, more employment opportunities, and increased inclusiveness,” as stated by SACCI in a statement.
US Inflation Below Expectations
The annual inflation rate in the US slowed for the fourth consecutive month to 2.9% in July 2024, the lowest since March 2021, compared to 3% in June and below forecasts of 3%. All eyes are now on the Fed’s September meeting where they are expected to cut rates by 0.25% – 0.5%. The SARB will meet two days later and is widely expected to follow the US.
Thanks to PPS Investments for the Market Overview.
Financial Indicators 19th August supplied by Sharedata.co.za
South African rand dips ahead of inflation data this week
The South African rand was slightly weaker in early trading on Monday, after gaining last week, ahead of the release of domestic inflation data on Wednesday which may provide hints on the country’s future interest rate path. Read the full xm.com report here>
JSE rallies to a new high
On Monday morning, the JSE continued its gains after breaking through the 83 000 points mark for the first time on Friday. At around 11:30 the South African bourse hit a new all-time high of 83 620 points – up by close to 0.9%. Read the full Moneyweb article here>
Gold close to historic $2,500 level on rate cut hopes
Gold prices eased on Monday and hovered around key $2,500 level, as traders locked in profits following bullion’s climb to a record peak in the previous session on the expectation of a US interest rate cut in September. Read the full BusinessDay article here>
Stocks gain, dollar declines on Fed cut hopes: Markets wrap
Share markets advanced on Monday while wagers on lower US interest rates pushed the dollar to its lowest in five months. Read the full Moneyweb article here>
Oil Prices dip on weak Chinese economic data
Oil prices declined this week due to weak economic reports from China, signaling a potential decrease in demand. Read the full report from oilprice.com here>