Local investors can be forgiven for thinking the reason for accelerated rand weakness in November is primarily related to SA-specific factors. However, until yesterday, the major influencer driving even developed market currencies weaker was outright dollar strength. As of yesterday, the dollar had strengthened against the Euro by 3.52%, the British pound by 2.73%, and…
The S&P 500 Index continues to set records despite known risks, such as growth slowdowns, supply chain issues, geo-political tensions between the US and China, rate hike probabilities, and persistent inflation. This has led to the S&P 500 Index now appearing very expensive, even as measured on a forward PE metric. However, it is likely…
As the COP26 conference winds down, it has seen some interesting wins for countries in the developed markets, and saw the US and China put aside their differences long enough to agree on an accord that will help trim global pollution. The overarching goal of the conference is to put measures in place to limit…
The current debate dominating the markets, and being discussed by market watchers, is the relationship between liquidity and growth. The question being asked is what markets would look like without the assistance that has helped plump up economies. Stimulus, if you will, is now starting to get cut back. Some argue that, as liquidity is…
By October month-end last year, global markets were facing massive risks to sustained recovery prospects. The looming US election was turning ugly, while there were still major concerns over the success of the Covid vaccine trials. As we stand one year later, the MSCI is up 39% as measured in dollars, this being significantly higher…
The primary economic talking point for the financial markets this week is whether global inflationary pressures will prove transitory or persistent and how central banks will respond. This has been a recurring theme over the past few months, one that we have touched on several times in our weekly news flashes. The impact for currencies…
During hard lockdowns implemented to curb the spread of the coronavirus, supply of some key items was severely restricted. Well after initial panic buying caused a shortage of essential household items in several markets, some continue to be severely impacted by other shortages as the global economy re-opens. The ongoing supply shortage of semi-conductors making…
The volatile trading during much of September has continued into October, with markets seemingly unable to pick a particular direction. According to Bloomberg, the S&P 500 alternated between gains and losses of at least 1% for four straight sessions this week – the longest stretch since June 2020. Ten-year Treasury yields, too, are swinging wildly.…
Debt woes at Chinese property developer, Evergrande, sent markets into a spin earlier this week, with investors questioning whether the company would default on $119 million in interest payments due on its bonds. Founded to capitalise on China’s ascending middle class and booming economy, the company is fuelled by $300 billion in debt and is…
