A brief overview of the market in September 2024: –
United States
Monthly return in US$
USA Dow Jones Industrial 30 2.0% Positive
USA Nasdaq Composite 2.8% Positive
USA S & P 500 2.1% Positive
Highlights
- US CPI cooled to 2.5% y/y from the 2.9% in July (vs 2.6% forecast)
- As expected, the Fed cut rates: but surprised with a 50 bps
- Fed policymakers projected another 50bps cut by the end of 2024, depending on data.
South Africa
Monthly return in US$
FTSE/JSE All Share Index (ZAR) 1.3% Negative
FTSE/JSE All Share Index (US$) 7.2% Positive
Highlights
- SA CPI fell to 4.4% y/y in August from 4.6% in July vs the forecasted 4.5%
- As expected, the MPC decided to cut rate by 25bps to 8% from 8.25%
- SA Q2 GDP grew by 0.4% q/q below the 0.5% expected but up from the 0.00% in Q1
The UK and EU
Monthly return in US$
UK FTSE 100 0.5% Positive
France CAC 40 1.0% Positive
Germany DAX 30 3.1% Positive
Highlights
- UK CPI was held steady at 2.2% y/y in August, as expected
- BOE held rates at 5% as expected, aiming to return CPI inflation to the 2% target
- Eurozone CPI fell to 2.2% y/y in August 2024 from 2.6% in July aligned to expectations
China and Japan
Monthly return in US$
Hong Kong Hang Seng 18.8% Positive
Japan Nikkei 225 0.5% Positive
Highlights
- China’s August CPI was lower than expected at 0.6% y/y vs 0.5%% in July (forecast 0.7%)
- PBCC announced broad policy easing measures to shore up a failing economy
- Stimulus policies and eased bank reserve requirements alongside liquidity programs which were introduced to boost stock markets
- Japan’s August core CPI was up 2.8% y/y and matched the forecast
Amended article by M & G Investments