Financial News 1st July 2024

Market overview
Last week, the FTSE/JSE All Share closed at 79 707.13, down 0.08%. The largest contributors during the week were the basic materials and oil & gas sectors, which increased by 2.27% and 1.53%, respectively. The largest detractors during the same period were the health care and financials sectors, which fell by 3.87% and 0.88%.
According to the MSCI indices, developed markets saw a weekly increase of 0.14%, while emerging markets saw a weekly increase of 0.06%.

Positive shift for SA businesses
The composite leading business cycle indicator in SA, designed to provide early signals of turning points in business cycles, increased by 2.4% month-on-month in April, from a 1.1% decline in the previous month. The largest positive contributors were an acceleration in the six-month smoothed growth rate in job advertisement space and an increase in the number of residential building plans approved. Meanwhile, declines were seen in both the average hours worked per factory worker and the volume of orders in the manufacturing sector.

SA consumer confidence improves
The FNB/BER Consumer Confidence Index for SA improved further to -12 in the second quarter of 2024, up from -17 in the preceding period. Despite still being in negative territory, this marks the best reading since Q4 2022, largely driven by reduced power outages and declining fuel and food prices.

Thanks to PPS Investments for the weekly Market Overview.

SA rand rallies post cabinet announcement
South Africa’s rand extended a post-election rally after President Cyril Ramaphosa announced a new cabinet that he said would prioritise rapid and sustainable growth. Read the full Moneyweb article here>

SA stocks are hot property as coalition era starts
The prospect of a business-friendly South African government has drawn foreign investors back to the country’s stock market, with inflows reaching levels last seen more than two years ago. Read the full Moneyweb article here>

Asian shares steady after first round of France’s election
Uncertainty over the US rates outlook kept Asian shares steady on Monday, while the euro rose after the first-round voting in France’s shock snap election was won by the far-right, albeit with a smaller share than some polls had projected. Read the full BusinessDay article here>

Oil Steady With Focus on Geopolitical Risks, Hurricane Season
Oil steadied as traders took stock of mounting geopolitical risks in Europe and the Middle East as well as a hurricane barreling toward the Caribbean. Read the full article here>

Gold steady as slowing inflation boosts hope of rate-cut bets
Gold prices held steady on Monday after data showed US inflation subsided, bolstering hopes that the Federal Reserve will start cutting interest rates in 2024. Read the full BusinessDay article here>

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