Market Overview
The FTSE/JSE All Share closed last week at 87 579.69, increasing by 4.47%. The technology and oil & gas sectors were the biggest contributors gaining 14.48% and 7.92% during the week. The increase came on the back of the Chinese government announcing stimulus which propelled stocks like Tencent higher. There were no negative sectors during the week.
Looking at the MSCI indices, developed markets increased by 1.42% during the previous week, while emerging markets increased by 6.21% over the same period.
Good news for SA consumers
The annual producer price inflation in South Africa eased further to 2.8% in August 2024, the softest in over a year, down from 4.2% in the previous month. On a monthly basis, producer prices fell by 0.3% in August, after decreasing by 0.2% in the previous month. Producer price inflation is an indication of input costs which is often used as a leading indicator for future inflation data.
US GDP growth remains solid
The US economy grew at an annualized rate of 3% in the second quarter of 2024, unchanged from the second estimate and above an upwardly revised 1.6% expansion in the first quarter. There were upward revisions to private inventory investment, federal government spending and imports. On the other hand, consumer spending grew slightly less than seen in the second estimate. The US economy grew 1.6% in Q1 2024, higher than 1.4% initially reported. In 2023, GDP growth was revised up to 2.9% from 2.5%, and for 2022, the GDP expanded 2.5%, 0.6% stronger than previously estimated.
Thanks to PPS Investments for the Market Overview.
Financial Indicators by Sharedata.co.za
South African stocks surge amid rate cuts, government reforms
South African stocks are experiencing their strongest third quarter in 11 years, with the FTSE/JSE Africa All Share Index rising about 10% and reaching 13 record highs. Read the full biznews.com article here>
Fuel-price drop to 2022 low to ease CPI outlook
South African fuel prices will drop to their lowest level in more than two and a half years on 2 October 2024, a sign that the country’s inflation outlook is improving. Read the full Moneyweb article here>
Could the rand dip below the R16 mark as it continues to gain against the dollar?
The ZAR has been having one of the best rallies in recent memory and was trading at around R17.06 against the dollar at 8.30am on Monday. Read the full IOL Business report here>
Fear of intensified Middle East conflict fuels oil
Oil prices extended gains on Monday, buoyed by the escalating concern over potential supply pressures from Middle East producers following Israel’s increased attacks on Iranian-backed forces in the region. Read the full BusinessDay article here>
Global markets get bumpy ride, as Japan’s stocks slump while Chinese markets soar
Global markets had a wild start to the week, with Tokyo’s Nikkei 225 index tumbling nearly 5% while Chinese markets soared on news of fresh stimulus for the faltering economy, with Shanghai up more than 8%. Read the full Yahoo! Finance article here>
Dovish Fed puts gold on track for best quarter since 2016
Gold prices eased on Monday but hovered near the record peak hit last week, setting bullion on track for its best quarter in over eight years following a jumbo US rate cut decision and expectations of another outsize reduction in November. Read the full BusinessDay article here>