Market overview
The FTSE/JSE All Share closed last week at 86 198.56, decreasing by 0.92%. The consumer staples and consumer discretionary sectors were the biggest contributors gaining 0.78% and 0.43% during the week. The basic materials and oil and gas sectors were the biggest detractors losing -4.42% and -3.14% respectively over the same period. Looking at the MSCI indices, developed markets decreased by 1.22% during the previous week, while emerging markets decreased by 1.21% over the same period.
SA producer price inflation hits multi-year low
South Africa’s annual producer price inflation decreased for the third month to hit 1% in September, easing from 2.8% in the previous month. This was the lowest reading since June 2020, primarily driven by a drop in prices for Coca-Cola, petroleum, chemical, rubber and plastic products. On a monthly basis, producer prices fell by 0.3% in September, the same rate as in the previous month.
Big week ahead as US elections dominate headlines
With the US elections taking place on the 5th of November the race remains too close to call. The outcome could have a material impact on both the US and global markets. A Trump victory could see slightly weaker US economic growth, higher inflation and a larger deficit than under a Harris presidency. This would also likely affect the Fed’s willingness to cut interest rates. The difference in outcomes stems mainly from differences in approach to trade, immigration and taxes.
Thanks to PPS Investments for the weekly Market Overview.
Financial indicators supplied by Sharedata.co.za
Here is the official petrol price for November
The Department of Petroleum and Mineral Resources has published the official fuel price adjustments that will take effect on Wednesday, November 6, 2024. See the new prices as reported by Businesstech.co.za here>
JSE stocks volatile as policy uncertainties shake market, says Chris Harmse
South African financial markets traded mostly weaker last week as uncertainty continues regarding the magnitude of interest rate cuts by the Monetary Policy Committee (MPC) of the SA Reserve Bank and the Federal Open Market Committee of the US Federal Reserve (Fed) at their upcoming meetings in November. Read the IOL Business report here>
Fed and peers will go ahead with rate cuts after this week’s US election
The Federal Reserve and many rich-world peers are widely expected to lower interest rates again in the coming week, right after a US presidential election that may not be decided yet. Read the full Moneyweb report here>
European stocks edge higher; caution ahead of US election, central bank meetings
European stock markets rose Monday, at the start of an action-packed week that includes a US presidential election, interest rate decisions from the Federal Reserve and Bank of England, as well as more quarterly corporate earnings. Read the full Investing.com article here>