Market overview
The FTSE/JSE All Share closed last week at 81 120,50, increasing by 1.50%. Looking at the MSCI indices, developed markets decreased by 0.82% during the previous week while emerging markets decreased by 1.56% over the same period.
SA inflation sees another drop
South Africa’s annual inflation rate eased to 5.1% in June 2024, edging lower from 5.2% in the previous two months, but remained above the central bank’s target of 4.5%. It is the lowest reading since December 2023, as prices softened across several CPI categories, including food and non-alcoholic beverages, housing and utilities. Meanwhile, annual core inflation, which excludes food and fuel prices, ticked down to 4.5%, the lowest reading since December 2023, from a prior 4.6%. Given that two members of the reserve bank voted for a rate decrease in July, it seems likely that rates will decline in the next few months.
US growth exceeds expectations
The US economy expanded an annualized 2.8% in Q2, up from 1.4% in Q1, and above forecasts of 2%. Consumer spending rose faster, led by a rebound in consumption of goods, mostly motor vehicles, recreational goods and vehicles. Also, private inventories added 0.82% to the growth, after being a drag in the past 2 periods, led by wholesale trade and retail trade industries.
Thanks to PPS Investments for the Market Overview.
South African Rand edges higher with eyes on Fed
South Africa’s rand edged higher early on Monday, as risk sentiment remained positive ahead of the U.S. Federal Reserve’s policy decision later in the week. Read the full CNBCAfrica article here>
Equities and the Rand remain strong despite global nervousness
Over the past week global financial markets moved uncertain and mostly negative given the uncertainty on global company earnings, interest rates and inflation rate movements over the next few months. Read the full IOL Business Report article here>
Asian stocks rebound amid hope for dovish tone in US and UK
Asian shares bounced on Monday into a week packed with earnings and a trio of central bank meetings that could see the US and UK open the door to easing, while Japan might lift borrowing costs in a step towards “normality”. Read the full BusinessDay article here>
Oil firms on worry of wider Middle East conflict
Oil prices rose on Monday, paring last week’s loss, on the fear of a widening conflict in the Middle East after a rocket strike in the Israeli-occupied Golan Heights, which Israel and the US blamed on Lebanese armed group Hezbollah. Read the full BusinessDay article here>
Top 5 things to watch in markets in the week ahead
It’s set to be a big week for markets with the Federal Reserve, the Bank of England and the Bank of Japan all set to hold policy meetings. Also in the spotlight will be Friday’s U.S. jobs report and more big tech earnings results. Here’s your look at what’s happening in markets for the week ahead. Read the full Investing.com article here>