top of page

Market Commentary | The week that was

The Federal Reserve (FED) will raise interest rates as high as needed and will keep them there "for some time" to bring down inflation that is currently much higher than the FED's goal of 2%, said FED Chairman, Jerome Powell, on Friday, 26 August. He addressed the annual Jackson Hole Economic Symposium in Kansas City. “I think overall the FED chairman was really hawkish, but not above and beyond what had been priced in and I think the jury is still out on whether or not we will see a rate hike of 50 or 75 basis points next month,” said Joe Manimbo, senior market analyst at Convera in Washington. Earlier in the month, the US Consumer Price Index (CPI) printed at 8.5% for July, year-on-year; cooling from 9.1% in June. That is considerable higher than the 7.8% for SA released by Stats SA last week.

China’s industrial profits trended lower last month amid weak domestic demand and persistent high costs. This is the latest proof of continued economic headwinds and a reminder of. the need for stronger policy support.

Looking at the week ahead; SA Trade Balance on Wednesday; Absa Manufacturing PMI on Thursday; Key US Data release on Friday, Nonfarm Payrolls & Unemployment Rate for Aug.

0 views0 comments

Recent Posts

See All
bottom of page