Key markets soften ahead of Trump taking office while rand weakens on various factors

--:--
Uncertainty about how aggressive incoming US president Donald Trump will be in implementing policy has hung over global markets in recent weeks. Continued US economic strength, as reflected in labour market and other data, is also creating nervousness about underlying inflationary pressures and future interest rate cuts. This is negative for bonds and equity valuations in the short term.

The rand has weakened appreciably to over R19/$ in recent weeks. It partly reflects dollar strength but also other factors, including post-year-end restocking of imported items, foreign selling of South African bonds and equities, and lacklustre economic growth. A more compelling level of economic growth is needed to attract foreign investment and cause the rand to strengthen.

STANLIB is an authorised Financial Services Provider in terms of FAIS and a registered representative manager in terms of CISCA.
13 Jan English South Africa Investing · Business News

Other recent episodes

US tariff threats raise fresh uncertainty in global markets

In this podcast, STANLIB’s Chief Economist, Kevin Lings, discusses President Trump’s extension of the deadline to 1 August to 20 countries to negotiate trade deals with the US or face tariffs of 30-40%. The threat raises various uncertainties: around the limited time to negotiate, what the final tariffs will be,…
14 Jul 11 min

US jobs grow but underlying trends raise some concerns

In this podcast, STANLIB’s Chief Economist, Kevin Lings, analyses latest US jobs data, which showed 147 000 jobs were created in May, above market expectations, while the unemployment rate fell to 4.1%. However, the private sector contributed about half the normal number of jobs and other surveys showed a similar…
7 Jul 8 min

US economy shows signs of slowdown while SA remains weak

In this podcast, STANLIB’s Chief Economist, Kevin Lings, examines various indicators of a slowdown in the US economy, whether it is experiencing inflationary pressures and the possibility of the US Federal Reserve cutting rates. He also analyses positive and negative data releases in SA last week, including a fall in…
30 Jun 9 min

SA’s inflation pressures increase; US Fed revises economic forecasts

In this podcast, STANLIB’s Chief Economist, Kevin Lings, points out that SA’s May CPI rate, at 2.8%, shows inflation remains well under control, although there is likely to be pressure in coming months from higher food and oil prices. He discusses what this means for the SARB’s plans to launch…
23 Jun 9 min

System readiness is key to a successful JIBAR to ZARONIA transition

Welcome to the STANLIB Corporate Conversations Podcast Series – our newest resource designed to offer timely, expert insights into the forces shaping financial and fixed income markets. Our first episode focuses on a significant development in South Africa’s financial landscape — the transition from the long-standing Johannesburg Interbank Average Rate…
12 Jun 8 min