In Tuesday’s trading session in the local markets, the Top 40 closed the day down 3.2%. The Resources 10 sector went down by 6.63%, the Financial 15 went down by 3.24%, the Industrial 25 went down by 1.12% and lastly the South African Listed Property index was up by 0.39%. The rand traded at R16.58 against the United State Dollar, R19.79 against the Great British pound, and R17.00 against the Euro. South Africa's state power utility said that it had signed a wage agreement with three recognized labour unions, allowing for a 7% salary increase and an increase of 400 rands per month on the housing allowance.
Figure 1: Anglo American PLC’s (JO:AMSJ) intraday price action
On the commodities front, Brent Crude oil is trading at $105.99 a barrel and WTI Crude oil is traded at $101.23 a barrel. Gold Spot price is currently trading at $1768.18. Platinum Spot is now trading at $862 and lastly, Palladium Spot price is at $1942. On the oil front, the fossil fuel dropped more than 8% as mounting fears that a recession will hurt demand were balanced by persistent supply concerns. OPEC Secretary said the oil industry was “under siege” due to years of underinvestment, and added that shortages could be eased if extra supplies from Iran and Venezuela were allowed.
Across the globe, the S&P 500 closed the day up 0.16%, Dow Jones closed the day down 0.42% and the Nasdaq had a 1.68% climb. The FTSE 100 closed down 2.86% and the DAX was down 2.91% and CAC40 was down 2.68%. In the Asian markets, the Nikkei 225 is currently down 1.2% and the Hang Seng is currently down 2.14%. The Reserve Bank of Australia raised the cash rate by 50 bps to 1.35% during its July 2022 meeting. The move followed June's 50-bps hike and a 25-bps increase in May, bringing the cash rate to a level not seen since May 2019. This afternoon the minutes of the last central bank meeting, manufacturing PMI data and the JOLTS report will be reported for the United States.