Johannesburg – South Africa’s financial markets had one of their best weeks last week as almost all financial assets recovered sharply.
Positive sentiments towards a much-improved economy, after the opening of more sectors, as the country moved to level 3 of the Covid-19 lockdown last Monday, had kickstarted a buying spree in financial assets.
Global and domestic risk-seekers had fled towards the shares, bonds, and the rand. Listed property shares had started with a rally.
The best part came late Friday with the release of the US jobs report. it was expected that the US unemployment rate would have deteriorated even further during May to a record level of 19.8% after the devastating number of 14.7% in April.
Caused by the massive stimulation package of the Trump administration, buying by consumers stared to return towards normal levels. This helped the economy create 2.4 million more jobs in May and the unemployment rate in fact came down to 13.3%.
This week, investors will turn their attention and focus on the release of the latest Sacci business confidence index. It is expected that it has improved from 77.8 in April to 83 in May. The unemployment rate for the country’s first quarter this year will be announced tomorrow.
