ThinkDaily - Fed Fund Rate now at 2007 Levels

  • Market Overview

In Wednesday's local market session, the Top 40 index closed 1.39% higher, with the Financial 15 and Industrial 25 sectors increasing by 1.44% and 1.88%, respectively. Meanwhile, the Resources 10 sector rose by 0.18%. The rand traded at R18.18 against the US dollar , R22.39 against the Great British pound , and R19.83 against the Euro . Anheuser-Busch InBev SA/NV's (JO: ANHJ ) share price reached pre-pandemic levels during yesterday's trading session. According to Statistic South Africa, the local CPI came out at 7% YoY, with food, non-alcoholic beverages, housing, utilities, and transport being the main contributors.

AB Inbev Historical Share Price Chart (Source: ThinkTrader Web)

Figure: AB Inbev Historical Share Price Chart (Source: ThinkTrader Web)

As for commodities, Brent Crude oil traded at $76.27 per barrel, and WTI Crude oil traded at $70.18 per barrel. Gold Spot price currently stands at $1982.84, Platinum Spot at $988.60, and Palladium Spot price at $1446.50. Across the globe, the S&P 500 , Dow Jones , and Nasdaq indexes closed down by 1.65%, 1.19%, and 0.74%, respectively. The FTSE 100 , DAX , and CAC40 increased by 0.41%, 0.14%, and 0.26%, respectively. In the Asian markets, the Nikkei 225 increased by 1.93%, while the Hang Seng rose by 1.65%. The Federal Reserve raised the fed funds rate by 25bps to 4.75%-5% in March 2023, matching the February increase and raising borrowing costs to new highs since 2007 due to elevated inflation. Moreover, the UK's annual inflation rate unexpectedly rose to 10.4% in February 2023 from 10.1% in January, the first increase in four months and higher than the forecast of 9.9%.

Market Moves (22 March 2023)

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