Financial News 20th January 2025

Market overview
The FTSE/JSE All Share closed last week at 84 700.44, increasing by 1.52%. The Telecommunication and Consumer Discretionary sectors were the biggest contributors gaining 9.82% and 4.26% during the week. The Consumer Staples sector was the lone detractor losing -0.42% over the same period.
Looking at the MSCI indices, developed markets increased by 2.72% during the previous week, while emerging markets increased by 1.26% over the same period.

US Inflation continues to increase
The annual inflation rate in the US increased for a 3rd consecutive month to 2.9% in December 2024 from 2.7% in November, in line with market expectations. This year-end rise is partly driven by low base effects from last year, particularly for energy. On a monthly basis, the CPI rose by 0.4%, the most since March, and above forecasts of 0.3%. The index for energy rose 2.6%, accounting for over 40% of the monthly increase, mainly due to gasoline (4.4%). Also, food prices went up 0.3% and shelter also edged up 0.3%.

UK inflation edges lower
Annual inflation rate in the UK unexpectedly edged lower to 2.5% in December 2024 from 2.6% in November, below forecasts of 2.6%. However, it matched the BoE’s forecast from early November. Compared to November, the CPI rose 0.3%, above 0.1% in the previous period but below forecasts of 0.4%. The annual core inflation rate also declined to 3.2% from 3.5% and the monthly rate went up to 0.3%, below forecasts of 0.5%.

Chinese growth surprises
The Chinese economy expanded by an annualised 5.4% in Q4 2024, accelerating from 4.6% in Q3 and surpassing market estimates of 5.0%. The growth was boosted by a series of stimulus measures launched since September to boost recovery and regain confidence. In December, industrial output growth quickened to an 8-month high, while retail sales emerged from a 3-month low. However, the jobless rate hit a 3-month top.

Thanks to PPS Investments for the market overview.

Financial Indicators by Sharedata.co.za

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