South Africa’s Finance Minister Enoch Godongwana this week presented a Budget that was uninspiring and unremarkable, apart from the announcement of government’s decision to tap into the Gold and Foreign Exchange Contingency Reserve Account (GFECRA). The GFECRA reflects movements in the value of the Reserve Bank’s stock of gold, foreign exchange, and forwards or swaps…
Markets briefly fell on Tuesday with the news that consumer prices in the US rose by a higher-than-hoped-for 3.1% for the twelve months to the end of January. But, by the end of the week, the S&P 500 had powered back to record highs. The rapid retracing of the value equities had lost earlier this…
Following a blockbuster gain of 26% in 2023, the S&P 500 has continued its winning streak in 2024. The index briefly powered to a new record high of 5,000 points on Thursday this week. Markets ignored cautious noises from the Fed about its timetable for interest rate cuts, relishing good earnings from companies in sectors…
2024 got off to a bad start for an estimated 82,300 US workers who were laid off when they returned to work after the festive season, according to data from Challenger, Gray & Christmas. Just a few examples of the companies across industries that downsized their workforces include the likes of American Airlines, Amazon, eBay,…
Janus, the Roman god that gives January its time, has two faces: One looking back into the old year, one looking forward into the next. Likewise, this is the season when asset managers, economists, and analysts gaze back at market performance for the previous year and make their predictions about what the upcoming year will…
The 2024 presidential race in the US kicked off in earnest this week, with Donald Trump trouncing his rivals in the Iowa primary. Iowa may be small and only one of 50 states in the US, but Trump’s margin of victory suggests he is still the favourite to be the Republican Party’s presidential candidate. Given…
Markets look set to end 2023 on a high note, with the Federal Reserve giving its strongest signal to date that the end of the current interest rate tightening cycle is now in sight. Practically every asset class—including equities and corporate bonds—surged yesterday after the Fed indicated that it is projecting more aggressive interest rate…
India’s stock market topped a total valuation of $4 trillion for the first time on Tuesday this week—on the same day that Moody’s downgraded the outlook for China’s sovereign credit rating. Data released this week also shows that institutional investors have pulled out over $31 billion in stocks and bonds from the Chinese financial system…
Global inflation has been the major theme of the post-COVID-19 years, stoked by supply chain disruptions, high energy prices, and robust consumer spending. Some corporations have been able to bolster margins over the past three years, thanks to consumers building up their cash reserves during the times of lockdown and government stimulus. But, as inflation…
