This week, Hurricane Harvey caused chaos in Texas and South Africa’s ALSI Index reached new highs despite the strength of the rand. For more economic news, continue reading.
- The US dollar is down 13.4% against the euro in 2017, making it a two-and-a-half year low.
- The MSCI Emerging Market Index has grown 25.9% in dollar terms in 2017.
- The MSCI China Index has gained 38.7% in 2017.
- The MSCI Europe (including the UK) Index is up 16% in dollars.
- Houston, the fourth largest city in America, has been hit by a schedule one Hurricane – Hurricane Harvey. It has been reported that 35 people have died and hundreds more have been injured, economic damages to southeast Texas, has been estimated at $75 billion.
- Donald Trump passed unpopular or polarising policies as Harvey dominated the headlines. On Friday evening Trump pardoned Joe Arpaio, fired another White House staffer, Seb Gorka, and made the ban on transgender people in the military official.
- Trump also reiterated that he was willing to shut down government if Congress failed to pass funding for his wall separating Mexico and the US.
- August saw the JSE blasting to new record highs, following two-and-a-half years of moving sideways.
- In 2017, the rand has gained 4.7% against the dollar, but has lost 7.7% against the strong euro and is down 0.7% against the pound.
- The ALSI is up 2.4% over the past week and 13% for the year to date.
- The ALSI 40 Index has returned 16.2% in 2017—Naspers has returned 46% in 2017 (excluding dividends), Richemont is up 29% (excluding dividends) and Anglos has gained 17%.
- The JSE Mid-Cap Index is only up 1% so far this year, while the Small-Cap Index has fallen 2.5% in 2017.
- Over the past week, Shoprite has gained 9.9%, reaching a record high.
- Capitec is up 27% in 2017, reaching another record high, Kumba has gained 48% and Assore 47.4%.
- Despite rand strength, in dollar terms, the Mining Index has climbed 29.4% over the past two months.