South African Markets: What to Watch Today
Today in South Africa, there are key political and economic events happening that could impact the markets. The National Assembly will have its first sitting since the recent election, where new lawmakers will be sworn in and the next president will be elected. Additionally, the government will be holding its weekly auction of inflation-linked bonds.
The South African rand saw a slight decrease in value as talks to form a government of national unity continued. On the stock market, the Top-40 index closed 1% lower.
In global markets, Japanese shares rose, outperforming other Asian markets, and the yen weakened after the Bank of Japan announced plans to reduce its bond purchases in the future.
On Wall Street, the S&P 500 and Nasdaq reached record highs for the fourth consecutive session, with technology shares leading the rally.
Gold prices increased slightly today and are on track for their first weekly gain in four weeks. This comes as U.S. economic data suggests a decrease in price pressures, leading to speculation about a potential rate cut from the Federal Reserve.
In South African news, the lack of consensus within the ANC to govern with the DA is seen as a risk for creating an unstable government, according to S&P. The ANC is also working to secure Ramaphosa’s re-election ahead of the parliament sitting.
Overall, these events and developments are important to monitor as they could have an impact on the South African markets. Stay tuned for more updates.
