Market overview
The FTSE/JSE All Share closed last week at 96 366,06, increasing by 2.17%. The basic materials and technology sectors were the biggest contributors increasing by 5.26% and 3.69% respectively during the previous week. The biggest detractor was the health care sector, which lost 1.01% over the same period.
Looking at the MSCI indices, developed markets increased by 1.35% during the previous week, while emerging markets increased by 2.28% over the same period.
SA Manufacturing continues to struggle
The seasonally adjusted Absa Purchasing Managers’ Index (PMI) for South Africa fell to 43.1 in May 2025 from 44.7 in April, marking the seventh consecutive month of contraction in factory activity and the sharpest decline since April 2020. Absa noted that trade disruptions with neighbouring countries, policy uncertainty, tariffs, and ongoing logistical challenges continue to weigh on the sector. The business activity index rose by 3.4 points to 43.4, suggesting a mild improvement in demand, though activity remains historically low.
Euro area hits inflation target
Eurozone consumer price inflation eased to 1.9% year-on-year in May 2025, down from 2.2% in April and below market expectations of 2.0%. This marks the first time inflation has fallen below the European Central Bank’s 2.0% target since September 2024. In response, the ECB reduced interest rates by 0.25% during their June meeting with additional cuts expected in the second half of 2025.
US Job market showing cracks
The US economy added 139 000 jobs in May 2025, a small slowdown from April’s downwardly revised 147 000, but slightly above forecasts of 130 000. Employment in US for the previous two months combined is 95 000 lower than previously reported. The data remains consistent with a slowing, yet still robust, labour market. However, recent policy changes from the Trump administration could put downward pressure on employment in the coming months.
Thanks to PPS Investments for the weekly Market Overview.
Financial Indicators by Sharedata.co.za
Win for the rand and petrol prices in South Africa
The South African rand has strengthened against a weakening dollar, which spells good news for fuel price recoveries and petrol prices in July. The local unit hit R17.68 against the dollar at the end of last week, before climbing back to R17.70 on Monday. Read the full Businesstech article here>
Wall Street heads for cautious start, dollar eases ahead of US-China talks
Wall Street index futures hovered a touch higher while the dollar pared recent gains at the outset of London talks meant to mend a trade rift between the United States and China. Read the full article from Reuters.com here>
Oil falls, though US-China trade talks provide a floor
Oil prices dipped a few cents on Monday but held onto most of last week’s gains as investors watched for US-China trade talks in London later in the day supported by some hopes a deal could boost the global economic outlook and fuel demand. Read the full BusinessDay article here>
Signs of slowing global growth, rising U.S. inflation emerging – Barclays
Signs of slowing global growth and accelerating U.S. inflation are emerging, suggesting the onset of pressures from President Donald Trump’s aggressive tariff agenda, according to analysts at Barclays. Read the full report from Investing.com here>
Gold slips as US-China trade talks dampen demand
Gold prices edged down on Monday as optimism over possible easing of US-China trade tension dampened bullion demand, while an outsize US jobs report tempered the expectation of interest rate cuts by the Federal Reserve. Read the BusinessDay article here>