The week in perspective

Wealth

The week in Perspective

Over the past week, the local currency strengthened by more than 4% against the USD and the British pound, and by more than 3% against the euro. The rand traded at around R14.30 against the USD and R18.73 against the pound. 

The rand firmed on Wednesday after Statistics SA announced that annual consumer inflation for August was marginally lower than analysts had expected. The consumer price index (CPI) rate was 4.9% compared with July’s 5.1%. The consensus was for CPI to accelerate to 5.2%.

Over the past week, the local currency strengthened by more than 4% against the USD and the British pound, and by more than 3% against the euro. The rand traded at around R14.30 against the USD and R18.73 against the pound.

The SA Reserve Bank (SARB) announced on Thursday afternoon that it would keep the repo rate unchanged at 6.5%. According to Reserve Bank governor Lesetja Kganyago, the decision was a close call, with four members of the Bank’s monetary policy committee preferring an unchanged stance, and three members advocating for an increase of 25 basis points, or a quarter of a percentage point.

On Friday, President Cyril Ramaphosa unveiled a government-led infrastructure spending plan aimed at attracting investments from the private sector and stimulating the struggling economy at a time when there is no fiscal room to do so. Ramaphosa said the infrastructure plan will focus on the roll out of projects worth R400 billion.

The administration of US president Donald Trump imposed additional tariffs on a list of imports from China worth $200 billion, bringing the total tally of tariffed goods to $250 billion. President Trump threatened to impose levies on an additional $267 billion worth of Chinese goods, essentially tariffing all US imports from China, if the country were to retaliate against the latest duties.

If the escalating US-China trade battle is a concern for markets, this is not showing up in prices. The S&P 500 Index and Dow Jones Industrial Average both posted record highs on Thursday.

Although markets are evidently becoming more agile in dealing with local and international events, they will still be bracing for Moody’s next rating review ahead of October’s medium-term budget policy statement.

 

Kind regards.

SECURITAS – Wealth Management






















Securitas Financial Group is a Registered Financial Services Provider (FSP) FSB license number 6536

Johan Steyn, RFP®, Cell. 082 680 9510, johan@securitas.co.za

Albert van der Linde, B.Com (US), B.Com (Hons)(UP), Cell. 076 087 3084, albert@securitas.co.za;

Hannes Bresler, CFP®, B.Com (Hons)(UJ), Pr.Tech Eng, Cell. 082 823 7973, hannes@securitas.co.za;

Market data provided by I-Net | News article provided by Securitas with 4D Wealth