Financial News 6th February 2023

Market Overview
The FTSE/JSE All Share closed at 80 791.36 last week, increasing by 1.92%. The industrials and consumer staples sectors were the best performing increasing by 3.26% and 1.97% respectively. The technology and basic materials sectors were the biggest detractors, decreasing by 4.12% and 3.12% respectively.
Looking at the MSCI indices, developed markets increased by 2.77% during the previous week while emerging markets increased by 1.98% over the same period.

Slow but steady recovery in the EU
The Euro Area economy expanded by 1.9% year-on-year during Q4 of 2022, above market expectations of 1.8%. The biggest winners included Ireland which recorded the biggest growth rate of 15.7%, followed by Portugal with 3.1% and Spain with 2.7%. Among the biggest economies, Germany expanded 1.1%, France 0.5% and Italy 0.1%. Overall, the Eurozone GDP expanded 3.5% in 2022.
The Annual inflation rate in the Euro Area fell to an eight-month low of 8.5% in January of 2023 from 9.2% in December, below forecasts of 9%. The data for Germany inflation is not currently available, as the country’s statistical office had to delay the release of its own figures due to technical issues with data processing.

US Fed hikes rates by 25 bps
The U.S. Federal Reserve hiked the target interest rate by 25 bps to 4.5-4.7% at its latest meeting. Although parts of the U.S. economy are slowing, the labour market remains strong. Read the full article here>

Oil recovers from three-week lows
Higher interest rates, however, are checking price gains as they are likely to curtail economic growth and increases in fuel demand. Read the full article here>

SA financial markets nervous before the President’s Sona
South African share and bond markets moved nervously during last week. Read the full article here>

Load shedding costs SA R900m a day, says Reserve Bank
South Africa’s electricity crisis is costing the economy as much as R899 million per day, according to central bank estimates. Read the full article here>

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