Market Overview
The FTSE/JSE All Share closed last week at 83 749.88, decreasing by 0.71%. The real estate sector was the biggest contributor gaining 2.56% during the week. The telecommunications and basic materials sector were the biggest detractors, decreasing by 5.34% and 5.05% respectively.
Looking at the MSCI indices, developed markets increased by 0.32% during the previous week, while emerging markets decreased by 0.07% over the same period.
SA Producer Prices Change
South Africa’s annual producer price inflation fell to 4.2% in July 2024, down from 4.6% in the previous month and below forecasts of 4.5%. It was the lowest reading since July of last year, reflecting a broad-based slowdown in costs, particularly for coke, petroleum, chemical, rubber, and plastic products (5% vs 6.7% in June), as well as food, beverages, and tobacco products (3.5% vs 4%). Costs also fell for electrical machinery and communication and metering equipment (5.5% vs 8.8%); metals, machinery, equipment, and computing equipment (4.9% vs 5.7%); and non-metallic mineral products (3.6% vs. 4.1%). On a monthly basis, producer prices edged down by 0.2% in July, following a 0.3% decrease in the prior month and compared with market estimates of a 0.1% increase.
US Core PCE Price Index
In July, the US core PCE price index, the Federal Reserve’s preferred gauge of underlying inflation, increased by 0.2% from the previous month, meeting market expectations and matching the 0.2% increase in June. Meanwhile, core PCE prices rose 2.6% from the previous month’s corresponding period, falling short of the consensus of 2.7% and aligning with the backdrop that supports the Federal Reserve’s decision to begin cutting interest rates.
Thanks to PPS Investments for the Market Overview.
Financial Indicators supplied by Sharedata.co.za
South African rand little changed ahead of manufacturing PMI
The South African rand was little changed in early trade on Monday, ahead of a purchasing managers’ index (PMI) survey for the domestic manufacturing sector. Read the full article from xm.com here>
Recession off the table for South Africa
South Africa is likely to avoid a recession, with Q2 2024 expected to see quarter-on-quarter growth. According to Nedbank’s economists, high-frequency statistics reflect a weak uptick in economic activity in Q2. Read the full Businesstech article here>
Petrol, diesel latest update: 48 hours until HUGE price cut
SA’s motorists have a little over 48 hours to hold off on filling up before the new petrol and diesel prices kick in at midnight on Tuesday. Read the full report from The South African here>
Asian stocks decline as China’s economy falters: markets wrap
Asian shares edged lower after ratcheting up four months of gains, as China’s efforts to support its ailing economy showed no signs of taking hold. Read the full article published in the Daily Maverick here>
Strong dollar trips up gold
Investors are waiting for crucial US jobs data to firm their bets on the size of Federal Reserve’s interest rate cut. Read the full BusinessDay report here>
Oil extends drop on signs of OPEC+ output boost and China woes
Oil pushed lower on signs OPEC+ will progress with a plan to lift output from October, while economic headwinds mount in China. Read the full Moneyweb report here>