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.
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