Financial News 4th December 2023

Market overview
The FTSE/JSE All Share closed last week at 75 705.88, decreasing by 0.01%. The basic materials and health care sectors increased by 4.18% and 1.47% respectively during the week. The consumer discretionary and industrial sectors decreased by 3.19% and 2.01% respectively during the same period.
Looking at the MSCI indices, developed markets increased by 0.88% during the previous week while emerging markets increased by 0.20% over the same period.

SA inflation concerns
Annual South African producer price inflation increased to hit a five-month high of 5.8% in October, up from 5.1% in the prior month, in line with expectations. On a monthly basis producer prices rose by 1% in October, following a 1.5% increase in September. The steady increase in produce prices could keep South Africa’s inflation at the upper 6% target which could result in more interest rate hikes by the Reserve Bank.

Euro inflation continues to decline
The annual inflation rate in the Euro Area declined to 2.4% in November, reaching its lowest level since July 2021 and falling below the market consensus of 2.7%. Meanwhile, the core rate, which excludes volatile food and energy prices, also cooled to 3.6%, marking its lowest point since April 2022 and coming in below forecasts of 3.9%.

US growth surprises
The US economy expanded an annualised 5.2% during the third quarter of 2023, beating expectations of 4.9%. This marks the strongest growth since Q4 2021. Residential investment rose for the first time in nearly two years and consumer spending went up 3.6%, the biggest gain since Q4 2021. Meanwhile, exports increased by 6%, while imports increased by only 5.2%. The main detractor was services spending.

Thanks to PPS Investments for the Market Overview.

MARKET WRAP: JSE kicks off December on a positive note
The all-share index continued the momentum that saw it gain more than 8% in November. Read the full Business Day article here>

Financial markets are heading for a strong year end
Financial markets locally and globally continued to recover strongly during November, and most had wiped out losses during the first ten months of the year. Read the full IOL Business article here>

Oil falls on demand fears and doubts over OPEC+ cuts
Oil prices extended declines on Monday, pressured by investor scepticism over the latest OPEC+ decision on supply cuts and uncertainty surrounding global fuel demand, though the risk of supply disruptions from the Middle East conflict limited losses. Read the full article here>

Gold jumps to record peak on Fed rate-cut bets
Gold prices bolted to a record high above $2,100 per ounce on Monday as Federal Reserve chair Jerome Powell’s remarks elevated traders’ confidence that the US central bank could cut interest rates early next year. Read the full Business Day article here>

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