Back

Market Commentary: August 2018

Here are this month’s highlights: It was a mixed month for global risk assets – Emerging market equities struggled, with geopolitical tension and dollar strength feeding into perceived vulnerabilities. US growth continued to be particularly strong, while consumers globally felt the bite of sharp oil-price increases.

Continue Reading

Market Commentary: July 2018

Here are this month’s highlights: Global equities had a positive month, with developed markets edging out emerging market peers. Corporate earnings’ season started on a positive note, despite concerns regarding the impact of ongoing geopolitical noise and simmering trade tension. Global bond markets were mixed, a hawkish Federal Reserve Bank statement sent the dollar higher towards month-end and oil prices declined as OPEC and Russia agreed to increase output.

Continue Reading

Market Commentary: June 2018

Here are this month’s highlights: The second quarter of 2018 ended on a bumpy note. Global trade tensions, the stalemate between Britain and the EU, and geopolitical spill-overs made headlines. Sentiment-driven emerging markets, technology stocks and cyclicals were noticeably volatile. South African equities, after an initial sharp sell-off, recovered toward month-end to close higher. Local bond and fixed income investors remained jittery, and the currency depreciated sharply against the greenback.

Continue Reading

Market Commentary: May 2018

Here are this month’s highlights: May saw little respite from geopolitically-driven volatility. Corporate earnings were largely positive, but global investors were left uneasy by the abrupt reversals in US rhetoric on Asia. Emerging markets bore the brunt of global risk-off sentiment. Whilst some markets were boosted by ever-higher oil prices, EMs with large current account deficits were particularly vulnerable. South African assets were not spared the broad-based sell-off. SA equities, fixed income and property markets all declined, and the rand slid against the dollar.

Continue Reading

Market Commentary: April 2018

Here are this month’s highlights: April saw a continuation of the risk assets rollercoaster. The Syrian strike and additional US sanctions against Russia unnerved investors, China’s more conciliatory tone soothed the markets, and a mixed month-end saw the potential implosion of the Iran-nuclear deal even as peace on Korean peninsula seemed imminent. Despite resurgent oil prices and some renewed risk-appetite, Emerging Markets posted their weakest relative performance for the year-to-date. South African equities outshone global peers, largely boosted by the rally in resources and Rand-hedge blue chips. The US dollar regained its ascendancy, and buoyant corporate earnings boosted developed market equities.

Continue Reading

Market Commentary: March 2018

Here are this month’s highlights: March was a particularly volatile month for global equities, as politics, tech and trade concerns weighed on investor sentiment. Monetary policy developments were mainly as expected, including decisions by the South African Reserve Bank to cut the repo rate, the US Federal Reserve Bank’s Federal Funds Rate increase, and the Bank of England keeping rates unchanged. Despite a shot-in-the-arm from the Moody’s ratings reprieve, local markets were weighed down by global trade jitters.

Continue Reading

Market Commentary: February 2018

Here are this month’s highlights: Developed and Emerging market equities, in a particularly volatile month, closed mostly lower. Investors were unsettled by prospects that the Federal Reserve may hike interest rates at a faster than expected pace and talk of trade-wars. Boosted by local political developments, however, South African equities outperformed global peers. The Rand and local bond markets rallied in response to a disciplined budget, and a reformist Cabinet reshuffle.

Continue Reading