Market overview
The FTSE/JSE All Share closed last week at 94 330.81, increasing by 0.86%. The oil & gas and financials sectors were the biggest contributors increasing by 2.91% and 2.37% respectively, during the previous week. The biggest detractor was basic materials, which lost 2.71% over the same period.
Looking at the MSCI indices, developed markets increased by 1.63% during the previous week, while emerging markets decreased by 1.10% over the same period.
SA Interest rate cut
The South African Reserve Bank cut its key interest rate by 0.25% to 7.25%, as widely anticipated, following a pause in March. The move was in response to a more favourable inflation outlook. Policymakers revised their inflation forecasts downward, now expecting it to average 3.2% in 2025 (vs. 3.6% in March) and 4.2% in 2026 (down from 4.5%), citing a lower starting point, more favourable oil prices and exchange rates, and the scrapping of planned VAT hikes. Growth projections were also lowered from 1.7% to 1.2%, reflecting increased downside risks.
US Growth turns negative
The US economy contracted at an annualised rate of 0.2% in Q1 2025, a slight improvement from the initial estimate of a 0.3% decline but still marking the first quarterly GDP contraction in three years. The upward revision was driven by stronger-than-expected fixed investment, which partially offset weaker consumer spending and a larger-than-anticipated drag from trade. Imports of goods and services soared by 42.6% as businesses and consumers rushed to stockpile goods in anticipation of higher prices following a series of tariff announcements by the Trump administration
Thanks to PPS Investments for the weekly Market Overview
Financial Indicators by Sharedata.co.za
The rand outperforms its peers … again
During May, most key currencies took advantage of the lethargic performance of the US dollar, with the bulk of the 16 currencies monitored by Currencies Direct strengthening against the greenback. The rand was the star performer during May, leaving all other emerging markets in its wake. Read the full article on Moneyweb.co.za here>
What to expect for petrol and diesel prices from June 04
Fuel taxes are set to increase for the first time in three years, but thankfully a stronger rand will shield South African motorists from fuel price hikes in June. See the impact of this and the outlook for the fuel prices on MSN here>
Asian shares and dollar fall on ongoing tariff concern
Asian share markets and the dollar made a soft start on Monday as US-China trade tensions continued to simmer, while investors turned defensive ahead of key US jobs data and a widely expected cut in European interest rates. Read the BusinessDay article here>
Morning Bid: Dollar slides on trade and tax fears
The U.S. dollar plunged to its lowest level in six weeks on Monday as June got underway, with U.S. tariff concerns back on the boil after last week’s legal confusion and military tensions rising across the globe. The euro led the charge, undaunted by the prospect of another interest rate cut from the European Central Bank on Thursday. Read the full Reuters article here>
European markets lower as investors eye US-China trade developments
At the time of writing (13:05 CEST), all major European indexes were in the red after China said the US “severely violated” the terms of their recent trade agreement. Market participants also considered the impact of US President Donald Trump’s plan to double current tariffs on steel and aluminium from 25% to 50% from this Wednesday. Follow the article on Euronews.com here>