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…
With inflation worries on the horizon internationally and locally, many are concerned that this could adversely affect economic growth and corporate earnings, which have just started to recover from the extreme downside caused by the global coronavirus pandemic. As inflation increases, central banks are tapering off stimulus packages, and need to do so in a…
The rand was surprisingly strong this week, gaining 2.3% against the dollar. What is unusual is that it achieved this in the midst of a stronger dollar and slightly softer global equity markets. Ordinarily global risk-on sentiment leads to a weaker dollar, rising global equity markets, and stronger emerging market currencies. At the moment, the…
International markets seem set on strong growth, with the S&P 500 closing several days at new highs. The S&P hit its 50th all-time high on 24 August 2021, placing it 20% up for the year to date. It seems this market is pricing in job gains with the US probably having added 725,000 jobs in…
Covid-19 has catalysed an innovation culture with many new software applications, security solutions, devices, and ways of working coming out of people’s need to hunker down at home while carrying on with their day-to-day jobs. An explosion in small business registrations and start-up activity bodes well, since small enterprises drive economic growth. According to the…
