Global equities faced challenges in October amid high inflation, interest rates, and Middle East conflict. US economic strength, China's positive trends, and market shifts influenced by oil prices were notable.
South African Finance Minister Enoch Godongwana’s projection in the Medium-Term Budget Policy Statement (MTBPS) that the debt ratio will stabilise at 77.7% of GDP before declining may be overly optimistic, according to Arthur Kamp, Chief Economist of Sanlam Investment Group. It will depend on expenditure restraint and growing the economy.
In September, major indices recorded a second consecutive month of negative returns, with the MSCI All-Country World Equity Index down 4.31% and the Nasdaq Composite Index down 5.77%. The FTSE/JSE Shareholder Weighted All-Share Index closed 2.05% lower. Dive deeper into the world’s best and worst-performing currencies as of September 2023.
In September, global markets retreated amid persistent inflation and rising oil prices, signalling prolonged high interest rates. The JSE’s All-Share Index fell 2.55%, and Chinese stocks impacted emerging markets.