Financial News 2nd October 2023

Market overview
The FTSE/JSE All Share closed last week at 72 382.88, decreasing by 1.38%. The oil & gas and industrial sectors increased by 6.67% and 0.93% respectively during the week. The technology and financial sectors decreased by 2.75% and 1.69% respectively during the same period.
Looking at the MSCI indices, developed markets decreased by 0.85% during the previous week while emerging markets decreased by 1.14% over the same period.

US growth in line with expectations
The US economy grew at an annualised rate of 2.1% in the second quarter of 2023, in line with expectations. Government spending rose 3.3%, in line with the previous estimate. During 2022, economic growth was lowered by 0.2 percentage points to 1.9%, amid downward revisions to consumer spending, inventory investment, state and local government spending and exports as well as an upgrade to imports. For 2023, the Fed sees the economy growing 2.1%

Euro inflation continues its decline
Annual Euro Area inflation decreased to 4.3% in September 2023, reaching its lowest level since October 2021 and falling below the market consensus of 4.5%, indicated by preliminary estimates. The core inflation rate, a crucial underlying measure that filters out volatile food and energy prices, also cooled to 4.5% in September, marking its lowest point since August 2022.
Among the largest economies in the Eurozone, rates decreased in Germany (4.3% vs. 6.4%), France (5.6% vs. 5.7%), and the Netherlands (-0.3% vs. 3.4%). However, in Italy and Spain, inflation rates accelerated to 5.7% and 3.2% from 5.5% and 2.4%, respectively.

Thanks to PPS Investments for the weekly market overview.

Rand slumps after local PMI data
The South African rand slumped on Monday, dragged down by local purchasing managers’ data that showed factory activity shrank for the eighth month in a row in September. Read the full Moneyweb article here>

‘These will hit consumers hard’: Steep fuel price hikes ahead in October
Diesel prices are expected to increase sharply for the fourth consecutive month when the fuel prices are adjusted next week. Meanwhile, petrol and illuminating paraffin prices will be hiked for the third month running. Read the full News24 Business article here>

Stocks rise after US deal, traders await Powell: Markets wrap
US stock futures advanced along with Asian equities after a deal was reached on the weekend to avoid an American government shutdown. Traders are waiting to hear Federal Reserve Chief Jerome Powell’s remarks for any clues on how much further rates will need to rise. Read the full Moneyweb article here>

Oil inches up on tight supplies as US dodges government shutdown
Oil prices edged up on Monday, recouping some of the losses suffered at the end of last week, as investors focused on a tight global supply outlook while a last-minute deal that avoided a US government shutdown restored risk appetite. Read the full Business day article here>

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