After a Hair-raising June, World Markets Record Their Best Month since November 2020

Global markets had their best month since November 2020… Let’s take a closer look.

• US corporate earnings were a key catalyst for the July rally.  US large-cap tech companies saw some of the biggest share price rallies – with Amazon, Netflix and Apple being among the best performing stocks in July.

• US headline inflation continued to climb. Core inflation (excluding food and energy components) appears to be moderating. The US Federal Reserve announced a second consecutive 0.75% hike at its July meeting.

• The European Central Bank (ECB) also raised rates at its July meeting.

• The prospect of slower economic growth helped to moderate the price of oil.

On the local front…

• The JSE followed global equity markets higher, bouncing back from June.

• Local inflation for June (7.4% YoY) followed a global trend, coming in higher than May and marginally above expectations.  The core inflation rate (excluding food and energy components) came in at 4.4% YoY, roughly in line with the SA Reserve Bank’s target.

• Despite the more muted inflation, the SARB used its July meeting to hike rates by 0.75%.

• The Rand ended the month (July) at R16.62/USD

Source: Anchor Capital