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

Loading player...
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 2025 English South Africa Investing · Business News

Other recent episodes

SA’s fuel price surges while manufacturing continues to slow

In this podcast, STANLIB’s Chief Economist, Kevin Lings, analyses the inflationary pressure of SA’s recent sizable fuel price increases: 18% for petrol in the last two months and 22% for diesel. This has implications for interest rates to control second-round effects. He also examines SA’s latest manufacturing data for August,…
12 Oct 10 min

Active vs Passive investing: Where does each fit in a portfolio?

Active and passive investing each have distinct characteristics and can play different roles within an investment portfolio. In this episode of The More You Know, Ryan Basdeo, Head of Index Portfolio Management at 1nvest, and Brendan Howie, Head of Product at STANLIB Asset Management, explore the differences between active and…
1 Oct 11 min

SARB hikes rates: What it means for your STANLIB Money Market Fund

In this podcast, Stephen Backhouse, Head of Retail Strategy: Group Channels at STANLIB Asset Management, chats to Eulali Gouws, Head of Money Market, about the interest rate decision. Eulali explains the reasoning behind the decision, how the team positions the STANLIB Money Market Fund to respond to the interest rate…
25 Sep 5 min