Market overview
The FTSE/JSE All Share closed last week at 76 428.31, increasing by 1.40%. The telecommunication and oil & gas sectors were the biggest contributors, increasing by 6.08% and 4.16% respectively during the week. Basic materials was the biggest detractor, decreasing by 2.93% during the same period.
Looking at the MSCI indices, developed markets increased by 0.83% during the previous week while emerging markets increased by 2.03% over the same period.
Boost in SA manufacturing
The seasonally adjusted ABSA Purchasing Managers’ Index increased to 54 in April, up from 49.2 in the prior month, to signal a renewed expansion in South African factory activity, that was the strongest since March 2022. According to ABSA, “The rebound comes from improved business activity, while better domestic demand filtered through to higher new sales orders. A full month of no load-shedding was likely positive for sustained business activity.”
Euro inflation stable while growth surprises
The annual inflation rate in the Euro Area remained at 2.4% in April, in line with market expectations. Inflation slowed for non-energy industrial goods and services. On the other hand, prices rose faster for food, alcohol, and tobacco inflation. The core inflation rate, a crucial underlying measure that filters out volatile food and energy prices cooled to 2.7%, down from March’s 2.9%. Annual GDP growth in the Eurozone’s expanded by 0.4% from the corresponding quarter of the previous year, above market estimates of a 0.2% expansion.
Thanks to PPS Investments for the weekly Market Overview.
SA consumers face stubborn borrowing costs on Fed’s rate cut delay, high inflation
The cost of borrowing in South Africa will remain elevated for longer as the first interest rate cut in four years now looks likely to be pushed further out to the final Monetary Policy Committee (MPC) meeting for the year in November. Read the full IOL Business article here>
Asian stocks climb to more than one-year high
Asian stocks rose to their highest in more than a year on Monday on renewed bets that the Federal Reserve would most likely ease rates in 2024, while the yen weakened after a strong surge last week from Tokyo’s suspected currency intervention. Read the full BusinessDay article here>
Oil gains ground after Saudi Arabia increases prices
Oil futures climbed on Monday after Saudi Arabia hiked June crude prices for most regions and as the prospect of a Gaza ceasefire deal appeared slim, renewing the fear the Israel-Hamas conflict could still widen in the key oil producing region. Read the full BusinessDay article here>
Gold Set to Break Higher Amid Rebounding Rate-Cut Bets: Key Levels to Watch
Gold and silver were both trading higher as the new week got underway. The two metals had bounced off their lows after Friday’s key US macro data – the April non-farm payrolls report and the ISM Services PMI – both disappointed expectations. Read the full Investing.com article here>