Events that moved the market in 2023

Chinese authorities would further revise rules to curb spending on and rewards from online video games after an earlier revision caused an $80 billion meltdown in Tencent and NetEase share prices.

Domestic inflation dropped for the first time in four months, to 5.5% in November from 5.9% in October, as falling fuel prices outweighed rising food costs.

China’s November CPI fell 0.5% compared with October, giving an annual CPI rate of 0.6%. Authorities face a daunting task in reviving demand as deflationary forces persist.

Public Enterprises Minister Pravin Gordhan said that Dan Marokane, a former Eskom executive, would rejoin Eskom as the CEO no later than 31 March 2024.

Spot gold climbed to $2 069.10/oz, its highest-ever level, on expectations that the US Federal Reserve would start to cut interest rates in March.

The rand traded 2% stronger at R18.24/$ after US core inflation slowed, raising hopes that the US Federal Reserve had finished raising interest rates.

SA’s unemployment rate fell to 31.9% in the third quarter of 2023 from 32.6%, the first time the rate has fallen below 32% since Q3 2020.

Brent crude traded above $85/barrel after an announcement by the OPEC+ heavyweights, lifting prices that fell more than 6% the week prior, on concerns over weaker global demand.

Conditions were set, avoiding a repetition of the mistakes made in previous bailouts of Eskom and other state-owned enterprises.

US Treasury Secretary Janet Yellen said the US third- quarter economic growth of nearly 5% pointed to a soft landing for the economy, but longer-dated bond yields could have remained elevated.

The tech-heavy Nasdaq Composite Index fell 1.8%, registering its weakest performance since February 2023.

Chinese shares, down 15% in 2023, reflect slowing economic growth, a liquidity crisis in the property market and geopolitical tensions undermining investor confidence.

Brent crude rose by $2.25 to $86.83/barrel on concerns that the conflict could disrupt supplies from the Middle East, which accounts for about a third of global oil supply.

The SARB’s repo rate remained at 8.25% in a widely anticipated move, keeping banks’ prime lending rate at 11.75%. Inflation is now within the SARB’s target range.

The US Federal Reserve held rates steady but said there could be one more rate hike before the end of 2023 and fewer cuts than previously indicated in 2024.

Oil surged to a 10-month high as OPEC+ supply cuts caused market tightness. There were fears it could surge above $100/barrel again, which would stoke global inflation.

Naspers and Prosus shares fell 3% after their boards announced that Bob van Dijk, CEO of Naspers since 2014 and Prosus since 2019, would leave by "mutual agreement."

The BRICS bloc added Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE; President Cyril Ramaphosa announced at the 15th annual BRICS Summit in Johannesburg.

China’s central bank cut key rates for the second time in three months, signalling greater efforts to boost a sputtering economic recovery.

Country Garden, one of China’s biggest private property developers, missed payments on two dollar-denominated bonds. The shares plunged 16% in Hong Kong.

Higher spending on wages and lower tax receipts could have lifted SA’s budget deficit between 0.5% and 1% above the 4% target for 2023/24, two economists warned.

The European Central Bank lifted rates by a quarter percentage point but hinted it could pause at its next meeting as data indicated a deepening economic downturn in the euro area.

The Federal Reserve hiked rates by 25 bps, taking them to their highest level in more than 22 years. Policymakers indicated two more rate hikes for 2023.

SA’s annual CPI slowed dramatically to 5.4% in June from 6.3% in May. The last time inflation was below the SARB’s maximum target of 6% was in 2021.

The Bank of England raised interest rates by 50 bps, saying there had been "significant" news suggesting Britain's persistently high inflation would take even longer to fall.

Signs of de-dollarisation were unfolding in the global economy, strategists at the biggest US bank, JPMorgan, said.

President Joe Biden signed a bill that suspends the US government's $31.4 trillion debt ceiling, averting what would have been the first-ever default.

SARB Governor, Lesetja Kganyago, announced an interest rate hike of 50 bps bringing the interest rate to its highest level since 2009.

There appeared to be no significant progress in debt ceiling talks, as the impasse between the White House and Republican congressional leaders continued.

The Bank of England had announced the twelfth successive increase in borrowing costs and no longer expects the UK to fall into recession.

The US ambassador to SA accused the country of covertly providing arms to Russia, drawing an angry rebuke from Pretoria.

The US Federal Reserve raised interest rates by another quarter percentage point, extending its 14-month crackdown on stubborn inflation.

Regulators seized First Republic Bank, selling assets to JPMorgan Chase, resolving the largest US bank failure since 2008 and ending the bank sector turmoil.

Electricity Minister, Kgosientsho Ramokgopa, warned South Africans to brace themselves for a difficult winter season.

The Institute of Risk Management highlights SA's power supply challenge, urging preparation for a potential grid collapse, despite the then-existing confidence that the risk is low.

Three members of the Monetary Policy Committee voted in favour of the 50 bps hike, while two voted for a 25 bps increase. The hike brought the prime rate to 11.25%, its highest level since 2009.

The Competition Commission stated consumers were subjected to ‘unjustified increases’ over the past two years with food prices having increased at the fastest pace in almost 14 years.

The US Federal Reserve announced another 25 bps interest rate hike, taking the benchmark rate to its highest level since 2007.

In an unscheduled announcement, the US credit rating agency cautioned SA's economic growth faced increasing pressure from severe electricity shortages.

Global financial crime watchdog, the Financial Action Task Force, puts SA and Nigeria on the grey list due to shortcomings in tackling illicit financial flows.

President Ramaphosa declared a national state of disaster to deal with the electricity crisis.

The latest hike followed four hikes in 2022, which brought eurozone rates out of negative territory for the first time since 2014.

The central bank’s Monetary Policy Committee voted 7-2 in favour of a second consecutive half-point rate hike, taking the main bank rate to 4%.

An announcement was made that customers would be able to pay for items using cryptocurrency, accepting the rand’s conversion rate at the time of payment.

SA proceeded with naval exercises off its eastern coast with Russian and Chinese warships, despite strain with some of its biggest trading partners.

Cyril Ramaphosa convened a meeting with the national energy crisis committee and the board of Eskom to discuss the power shortage.

SA hosted the group’s annual summit for 2023. President Cyril Ramaphosa promised more African countries would be invited to attend.

Minister of Communications and Digital Technologies, Khumbudzo Ntshavheni, announced plans to establish a state bank, with an initial rollout of 100 new branches.

The change aligns with a resolution adopted by the governing ANC at its national conference in December 2022.