Market overview
The FTSE/JSE All Share closed last week at 94 710.50, decreasing by 0.60%. The health care and consumer staples sectors were the biggest contributors increasing by 1.59% and 1.48% respectively during the previous week. The biggest detractor was the basic materials sector, which lost 2.81% over the same period.
Looking at the MSCI indices, developed markets decreased by 0.50% during the previous week, while emerging markets decreased by 0.02% over the same period.
SA Inflation remains low
South Africa’s annual inflation rate remained at 2.8% in May 2025, in line with April’s five-year low. On a monthly basis, the CPI increased 0.2%, slightly below the 0.3% rise recorded in April, marking the lowest monthly increase in five months. Meanwhile, the annual core inflation rate held steady at 3.0% in May, reflecting its lowest reading since July 2021.
US Rates on hold once again
The Federal Reserve left the federal funds rate unchanged at 4.50% for the fourth consecutive meeting in June 2025, in line with expectations, as policymakers take a cautious stance to fully evaluate the economic impact of President Trump’s policies, particularly those related to tariffs, immigration and taxation. Officials also noted that uncertainty about the economic outlook has diminished but remains elevated.
Despite this, the Fed continues to project two rate cuts later this year, though it anticipates only one quarter-percentage-point in 2026 and 2027. In its updated projections, the Fed lowered its GDP growth forecast for 2025 to 1.4% (down from 1.7%) and for 2026 to 1.6% (down from 1.8%), while leaving the 2027 estimate unchanged at 1.8%.
Thanks to PPS Investments for the weekly Market Overview.
Financial Indicators by Sharedata.co.za
Bombshell for petrol prices in South Africa
The United States’ decision to bomb nuclear sites in Iran this weekend has already started sending shockwaves through global markets, and oil prices are expected to rise sharply as a result. Some analysts believe oil prices are now at risk of almost doubling to over $130 a barrel, which could see local petrol pricing surge. See how the bombing could impact the local economy in this report by Businesstech.co.za here>
Oil, dollar trim gains after US attacks on Iran: Markets wrap
The dollar and oil pared an early advance, as traders awaited Tehran’s response after Washington struck Iran’s nuclear sites over the weekend. See the full report on Moneyweb.co.za here>
Investors brace for oil price spike
Oil expected to push higher this week, while on Sunday markets in Qatar, Saudi Arabia and Kuwait largely unaffected by US strikes on Iran and Israel’s Tel Aviv main index reaches an all-time high. See the full BusinessDay article here>
Eurozone business activity stalls in June: Will the ECB cut again?
Eurozone business activity stalled in June, with PMI data showing flat growth linked to weak services and manufacturing. Germany improved slightly, while France declined. Persistent service-sector cost pressures and renewed energy concerns may cloud ECB rate cut prospects. Read the full article on Euronews.com here>
When uncertainty is at extremes, its important to step back and simply zoom out
The chart below supplied by Ninety One shows the impact of major geopolitical events on the Dow Jones over the past 125 years. Despite everything, the markets always recovered so a kneejerk reaction to pull out of stocks is not recommended.
