Author: Prowess Investment Team

The United States could see fewer cuts than previously forecasted. Locally, S&P revised the outlook on South Africa’s local (BB) and foreign currency (BB-) from stable to positive.

Last week, Donald Trump was won the 2024 US elections in a historic comeback. Trump claimed a convincing victory also winning the popular vote The Republicans also won control of the US Senate and retained a majority in the House of Representatives.

Last week, the US non-farm payrolls (NFP) for October significantly undershot expectations, wqhile locally, Finance Minister Enoch Godongwana delivered the Medium-Term Budget Policy Statement (MTBPS) for 2024, painting a cautious picture of growth…

Finance Minister Enoch Godongwana delivered the Medium-Term Budget Policy Statement (MTBPS) for 2024. In his statement, he paints a cautious picture for growth while highlighting an ambitious infrastructure-driven plan…

The eyes of the market are now firmly fixed on next week’s US election, which remains too close to call. Locally, the Governor Lesetja Kganyago reiterated his call for a lower inflation target…

Last week, Fed speakers continued to caution against expectations of aggressive US rate cuts, as the future path of monetary policy will be driven by incoming data and the economy’s performance. Locally, SARB Governor Lesetja Kganyago presented an argument to lower South Africa’s 3-6% inflation target, while this week, the IMF’s annual meeting takes place in Washington, as it releases its World Economic Outlook…

Although last week’s US inflation print showed a sixth consecutive monthly decline, it still came in above market expectations, while the Federal Open Market Committee (FOMC) minutes gave investors some direction on the possible rate path going forward. Locally, the Rand experienced volatility on the back of tensions in the Middle East and the FOMC output…

Fed Chair Powell suggests that 50bp cuts will not be the norm moving forward, Euro area inflation returns to the ECB’s 2% target, while vigilance remains high on the Middle East and the increasing potential for a widening and escalating regional conflict there…

Last week saw markets digest the impact of monetary policy rate cuts by Central Banks. The focus has now shifted from when the cuts will take place to how much lower monetary policy rates will go. The global economy is starting to turn the corner, with declining inflation and robust trade growth according to the Organisation for Economic Cooperation and Development…

Last week saw a flurry of central bank activity, with the US Federal Open Market Committee cutting rates by 50 basis points and the SARB’s Monetary Policy Committee (MPC) cutting its repo rate by 25 basis points to 8.0%…