Financial News 8th July 2024

Market overview
The FTSE/JSE All Share closed last week at 80 797.38, increasing by 1.40%. The oil & gas and basic materials sectors were the biggest contributors gaining 5.57% and 4.86% respectively during the week. The technology and health care sectors were the biggest detractors, decreasing by 1.29% and 1.16% during the same period.
Looking at the MSCI indices, developed markets increased by 1.98% during the previous week while emerging markets increased by 1.92% over the same period.

SA inflation outlook improves
South African inflation expectations for the next two years declined, indicating that the South African Reserve Bank is making progress before their policy meeting later this month. The average two-year inflation expectation fell to 4.9% in the second quarter from 5.2% previously, according to a survey released on Friday by the Stellenbosch-based Bureau for Economic Research (BER).

US job market starting to cool
The US economy added 206 000 jobs in June 2024, slightly below a downwardly revised 218 000 in May and above forecasts of 190 000. Data for May was revised sharply lower from an initial 272 000 and the April reading was also revised down by 57 000 to 108 000. With these revisions, employment in April and May combined is 111 000, lower than previously reported. The US unemployment rate increased to 4.1%, the highest since late 2021, bolstering prospects that the Federal Reserve will begin cutting interest rates in coming months.

Thanks to PPS Investments for the weekly Market Overview.

South African rand slightly weaker on stronger dollar
The South African rand was slightly weaker in early trade on Monday, as the dollar recovered after slipping last week on bets on a nearing U.S. rate cut. Read the full article here>

Oil slips as Gaza talks ease supply worries
Oil prices dipped on Monday after rising for four weeks, as the prospect of a ceasefire deal in Gaza eased geopolitical tension in the Middle East, while investors assessed potential disruption to US energy supplies from Tropical Storm Beryl. Read the full BusinessDay article here>

Financial markets remain bullish after SA picks Cabinet
The announcement of the new Cabinet of the Government of National Unity by President Cyril Ramaphosa last Sunday, brought calmness to South Africa’s financial markets. Read the full IOL Business article here>

Profit-taking pulls gold away from its May high
Gold prices slipped on Monday, as investors booked profits after bullion hit a more than one-month high in the previous session on rising bets of US interest rate cuts in September. Read the full BusinessDay article here>

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