Financial News 6th November 2023

Market overview
The FTSE/JSE All Share closed last week at 72 856.19, increasing by 4.90%. The technology and financial sectors increased by 9.20% and 8.24% respectively during the week. The telecommunications sector decreased by 2.43% during the same period.
Looking at the MSCI indices, developed markets increased by 5.58% during the previous week, while emerging markets increased by 3.12% over the same period.

Euro growth under pressure
Annual GDP growth in the Eurozone increased by 0.1% in the third quarter of 2023, the weakest reading since the contractions in 2021, and below forecasts of 0.2%. The data indicates a 0.1% quarterly growth in France, 0.3% in Spain and 0.5% in Belgium, but that failed to offset a 0.1% quarterly decrease in Germany, no growth in Italy, and contractions in Austria, Portugal, Ireland, Estonia and Lithuania.
The euro zone economy has faced strong headwinds from high inflation, record high interest rates and slowly tightening fiscal policy.

US economy sees muted job growth
The US economy added 150 000 jobs in October, below market forecasts of 180 000. The unemployment rate in the United States increased to 3.9% in October 2023, slightly exceeding market expectations and the previous month’s figure of 3.8%.
Equity markets increased and the dollar fell on Friday following the release of US job data, which eased concerns of further interest rate hikes.

Thanks to PPS Investments for the weekly Market Overview.

Asian shares keep rallying on bullish rates sentiment
Asian shares rallied for a fourth consecutive session on Monday after markets moved to price in earlier rate cuts in the US and Europe, bullish wagers that will be tested by a swarm of central bank speakers this week. Read the full Business Day article here>

Rand stable after week of gains
The rand was little changed in early trade on Monday against a weaker dollar as recent US economic data fuelled expectations that the Federal Reserve is done hiking interest rates. Read the full Moneyweb article here>

Oil ticks up as Saudi Arabia and Russia vow to stick to cuts
Such a move will keep supply tight as investors watch out for tougher US sanctions on Iranian oil. Read the full Business Day article here>

Steady as she goes for lower fuel prices to continue over the festive season
Fuel prices in South Africa were likely to hold steady over the festive season barring a further unforeseen escalation of global geopolitical tensions. Read the full IOL Business Report article here>

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