International
- Q2 of 2021 saw a significant rise in inflation in the United States which prompted the Federal Reserve to start signalling a rise in interest rates sooner than previously expected. The talks surprised the market. It is anticipated that rate hikes will come into effect at the end of 2023. This caused some market jitters throughout June. The Federal Reserve has confirmed that monetary policy will remain accommodative for now, given that inflation is transitory.
- China has indicated that it is targeting more balanced economic growth. Consumption and services have continued to recover, while exports and the housing market are fading on lower Covid-related demand. Commodity prices have begun to drop on the back of this normalisation and on China’s strong rhetoric against commodity price manipulations. China’s slowdown is a headwind for commodity prices and despite global fiscal spend supporting commodities, it is expected that there will be further commodity headwinds into the end of the year.
Key indices to 30 June 2021
| KEY INDICES | 1 month to 30 June 2021 | 3 months to 30 June 2021 | 1 years to 30 June 2021 | 3 years to 30 June 2021 | 5 years to 30 June 2021 |
| Local shares
FTSE/JSE All Share TR ZAR |
(2.43)% | 0.05% | 25.07% | 8.09% | 8.11% |
| Local resource shares
FTSE/JSE Resources 10 TR ZAR |
(6.55)% | (5.15)% | 28.42% | 19.32% | 20.25% |
| Local industrial shares
FTSE/JSE Industrials l 25 TR ZAR |
0.56% | 0.10% | 17.12% | 6.84% | 6.17% |
| Local financial shares
FTSE/JSE Financial 15 TR ZAR |
(2.62)% | 8.11% | 33.45% | (2.35)% | 2.28% |
| Local property
FTSE/JSE SA Listed Property TR ZAR |
3.37% | 12.12% | 25.17% | (8.86)% | (6.85)% |
| Local bonds
Beassa ALBI TR ZAR |
(2.5)% | (1.7)% | 17.0% | 5.5% | 8.7% |
| Local cash
STeFI Composite ZAR |
1.09% | 6.86% | 13.68% | 9.24% | 9.16% |
| Global shares
MSCI ACWI GR USD |
5.48% | 3.98% | 14.95% | 16.72% | 14.62% |