Financial News 24th June 2024

Market overview
The FTSE/JSE All Share closed last week at 79 767.56, increasing by 3.52%. The health care and industrials sectors were the biggest contributors gaining 9.69% and 6.74% respectively during the week. The technology sector was the lone detractor, decreasing by 3.33% during the same period.
Looking at the MSCI indices, developed markets increased by 0.47% during the previous week while emerging markets increased by 0.98% over the same period.

SA inflation remains unchanged
South Africa’s annual inflation rate came in at 5.2% in May, unchanged from April and in line with market forecasts. However, it remains above the central bank’s preferred target of 4.5%.
The annual core inflation rate, excluding volatile items such as food and non-alcoholic beverages, fuels and energy, stood at a three-month low of 4.6% in May, the same as in April. Monthly, consumer prices rose by 0.2% in May, after a 0.3% increase in the previous month.

UK inflation reaches BOE target but rates on hold
The annual inflation rate in the UK slowed to 2% in May 2024, the lowest since July 2021, from 2.3% in April and in line with forecasts. The inflation returned to the Bank of England’s (BOE) 2% target, led by a slowdown in cost of food, restaurants and hotels and recreation and culture. The annual core inflation rate eased to 3.5%, the lowest since October 2021, from 3.9% in April. Compared to April, the CPI went up 0.3%.
Despite the lower inflation reading, the BOE decided to keep interest rates at 5.25%, in line with market expectations. Two members of the BOE advocated for a decrease to 5%.

Thanks to PPS Investments for the weekly Market Overview.

South African Rand Dips As Market Awaits Ramaphosa’s Cabinet Picks
On Monday, the South African rand weakened, trading at 18.0075 against the dollar, as markets awaited President Ramaphosa’s cabinet choices following the African National Congress’s first parliamentary majority loss in 30 years. Read the full article here>

Money flooding back into South Africa
Investors are bullish on South African equities, even if there are still question marks over the Government of National Unity. Read the full article here>

Gold inches higher as yields slip
Gold prices edged up on Monday as treasury yields fell, while investors awaited key US inflation data and Federal Reserve officials’ comments through the week for fresh clues on the potential timing of the central bank’s interest rate cut. Read the full BusinessDay article here>

Stocks rise as traders await inflation cues: Markets wrap
Global stocks rose as traders geared up for a week laden with political risk and inflation data. Rad the full article here>

Oil slips as strong dollar weighs on commodities
Oil prices inched down on Monday as the concern that interest rates will remain higher for longer resurfaced and lifted the dollar, offsetting support for oil markets from geopolitical tensions and Opec+ supply cuts. Read the full BusinessDay article here>

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