Investors Waiting for US Inflation Data

  • Market Overview

Global markets were mixed on Monday as some investors waited to see what the latest US inflation number would be when data is released this Wednesday afternoon. All three US indices were trading in the red at 18h30 after losses were recorded in the tech and real estate sectors. “Meanwhile, investors are awaiting the US inflation report on Wednesday for more insights into price pressures and the monetary policy outlook,” stated Trading Economics.

Major European markets closed mixed, with the DAX closing down after data showed that “German industrial production fell more than expected in March, due in part to a weak performance by the automotive sector,” added Trading Economics. In contrast, gains in energy, banks and healthcare counters helped the FTSE 100 and CAC40 to close in the green.

Gains in the resource sector and Sasol (JO: SOLJ ) helped the local bourse to close up by 0.56% yesterday. “All eyes turn to March's mining and manufacturing data set to be released on Thursday for insights into South Africa's economic performance during the first quarter. However, concerns about extensive load-shedding persist as Eskom increased the level of power cuts to stage 6 over the weekend, meaning some areas are left without power for up to six hours. The failure of additional power-generating units and the delay in returning other units to service have been recurrently mentioned as the main reasons,” reported Trading Economics.

The Shanghai and Hang Seng indices closed in the green after “bank shares in China saw their biggest one-day gains since the country's 2015 equity bubble after more lenders reportedly cut deposit rates,” Trading Economics added. However, Japan’s Nikkei 225 fell by 0.72%.

The price of gold continued to trade above $2 020 an ounce at 18h40 yesterday, while the price of oil increased somewhat after “market sentiment was boosted by better-than-expected job growth in the US, which alleviated concerns over a potential economic downturn.”

PSG Wealth Daily Investment Update, 9 May 2023

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