Market Summary
The JSE All Share closed the week at 110 230.90 decreasing by 2.09%. The biggest contributing sector was the consumer staples sector, adding 1.14% while the oil & gas sector decreased by 9.96% during the same period.
Looking globally, developed markets decreased by 1.71% (USD) during the week. Emerging markets decreased by 4.44% (USD) during the same period.
Local Events
• South Africa’s producer inflation rose to 7.8% year on year in May, driven by sharp increases in fuel-related costs, signalling rising pipeline inflation pressures.
• South Africa’s consumer confidence fell sharply to -19 in Q2, reflecting weaker household sentiment amid rising fuel costs and higher interest rates.
• Expected fuel price cuts of around R1.50–R2.00 per litre on Wednesday signal easing inflation pressures, supported by lower oil prices and a stronger rand.
• Cape Town port’s R96 million investment in new equipment aims to improve operational efficiency and address weak global rankings, supporting trade activity and economic growth.
Global Events
• US core PCE inflation rose to 3.4% year on year in May, remaining well above the Federal Reserve’s target and reinforcing expectations of a higher for longer interest rate environment.
• The US economy grew at an annualised 2.1% in Q1, signalling stronger economic momentum and supporting expectations of sustained higher interest rates.
• Germany’s Ifo Business Climate Index rose to 85.6 in June, signalling improved business sentiment and reduced uncertainty in Europe’s largest economy.
• US personal spending rose 0.7% month on month in May, above expectations, signalling resilient consumer demand despite pressure from higher energy costs.
Thanks to PPS Investments for the Market Summary.
Financial Indicators by Sharedata.co.za
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