Global Market Themes: US stocks pull back on interest rate and inflation fears, uncertainty over stimulus. US narrowly avoids a government shutdown, though concerns about debt ceiling linger. Fears of low-growth-high-inflation equilibrium dampen European investors’ enthusiasm. Chinese jitters spill over to global equity markets. Evergrande saga unsettles market participants, sends global property markets lower. Oil prices rise to three-year high, as some OPEC countries renege on production commitments. SA Market Themes: South Africa moves to lockdown level 1, with significant easing of restrictions. South African markets fare modestly better than global peers, amidst China fall-out. Resources bear the brunt of the sell-off, while Financials gain ground. Rand avoids a taper-tantrum. Electioneering continues apace ahead of local government elections on the 1 November.

Here are this month’s highlights: In August, Chinese equity markets showed signs of stabilising despite investor sentiment in the offshore market remaining weak. At the macro level, economic activities in the summer were negatively impacted by floods in central China and pockets of Covid-19 lockdowns. The imminent collapse of Evergrande, one of China’s largest property developers, saw investors globally worry that a default of its USD300bn debt could create a systematic risk.

Global Market Themes: Developed and Emerging Market equities post solid returns in August No new market guidance out of Jackson Hole Symposium Despite increasing regulatory scrutiny of US Big Tech, stock prices push higher Chinese regulatory crackdown continues, leaving investors fretting OPEC agrees to gradual boost in oil supply SA Market Themes: Impact of Naspers/Prosus evident in divergent local equity indices Naspers and Prosus fall materially on Chinese regulatory pressure in August Financials buck the trend, gaining more than 12% on positive earnings results Fixed income delivers solid performance, led by listed property South Africa still counting the cost of looting and unrest, economic news mixed

Here are this month’s highlights: Regulatory activity led to a broad sell-off across Chinese markets amid concerns on China’s policy direction. Following recent market dislocation, RisCura is in the process of rebalancing client portfolios and topping up some recent underperformers. We look at the concept of ‘Common Prosperity’ which has received renewed attention from the Chinese Communist Party.

Global Market Themes: Developed Market (DM) equities continued to perform well, MSCI World gains 1.7% in USD Emerging Market (EM) equities decline, against the backdrop China’s additional regulations Safe haven assets find favour amidst concerns around Delta variant and slowing global growth Commodities led higher by gold SA Market Themes: Wide-spread unrest dominates local news, causing investor jitters Local equities shrug off socio-political concerns, closing over 4% higher. Resources lead the charge on the local equity front

Here are this month’s highlights: This month, we review the recent market sell-off and regulatory concerns. Chinese markets saw incredible volatility recently but none of it unprecedented. When investing in China, investors should understand and respect the social objectives of the Chinese state capitalist system.

Global Market Themes: Solid month for Developed Market (DM) equities as Covid-19 restrictions ease US stocks shine, supported by favourable economic data Widening gap between vaccine roll-out in DM and Emerging Markets (EM) takes its toll on the latter’s stocks Chinese stocks dip due to profit-taking and open market operations by People’s Bank of China (PBOC) Commodities post substantial losses SA Market Themes: South African equities slump, with resources and commodities the biggest drag on performance SARB reiterates belief that inflation is transitory, but longer-term upward pressures on the horizon GDP growth comes in stronger than expected for Q1 2021 Tighter restrictions as South Africa moves into Adjusted Lockdown Level 4

Here are this month’s highlights: The MSCI China and MSCI China A Onshore indices were down 6.9% and 2.2%, respectively. On the macro front, the Chinese Yuan appreciated strongly in May to a three-year high against the US dollar. China has delivered multiple multi-billion-dollar companies to match the size of their American peers. China is the only country, after the US, to achieve this.

Global Market Themes: Improved COVID-19 numbers boost global growth prospects US equities post solid performance, while UK and European stocks outperform Emerging markets outperform developed peers for the first time since January 2021 Divergence between China Onshore and China A shares — domestically-driven growth continues at steady pace Stronger commodities aid EM rally, particularly in Latin America SA Market Themes: SA equities post gains, but fixed income outperforms Naspers-Prosus share-swap proposal is widely criticised Sharp rise in local, global inflation, in line with higher input prices Rand rallies against major global currencies, stays below R14/$ Coronavirus cases surge, stricter lockdown and ongoing corruption allegations Loadshedding hits businesses and sentiment hard