Newsletter – 10th May 2017

Newsletter – 2nd May 2017
May 8, 2017
Nuusbrief – 10de Mei 2017
May 23, 2017
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Newsletter – 10th May 2017

Good day,

In April, the Standard Bank South Africa Purchasing Managers’ Index (PMI) moved closer to 50.0, but for April remained above this neutral mark for the eighth month running. According to the latest index report, this signals the longest sequence of overall improvement in operating conditions in over four years.

The rand traded weaker against the US dollar for most of the past week in anticipation of the US Federal Reserve Board (Fed) decision regarding rates. The local currency hit the R13.70 to the dollar mark, but strengthened following positive news from the US. Earlier in the week, the Fed held rates steady, but said weakness in the US economy was likely in the first quarter.

Friday’s US employment report was fairly upbeat, with 211,000 jobs added to payrolls in April, versus a downwardly revised 79,000 in March. The unemployment rate fell to a 10-year low of 4.4%. Average hourly earnings were restrained, rising a less-than-expected 2.5%. The report paves the way for likely rate hikes from the US Federal Reserve Board at its June meeting.

Emmanuel Macron is France’s next president, opponent Marine Le Pen had to concede after drawing less than 35% of the vote. For Macron, the two-round parliamentary elections in June will be critical for his fledgling En Marche! party, which will have to cobble together a working majority to allow Macron to govern effectively.

Economic growth in the Eurozone increased at an annualised pace of 1.8% in the first quarter of 2017. The purchasing managers’ indices reported during the past week would seem to suggest that European growth could be accelerating further.

Oil steadied after sliding below $45 a barrel for the first time since OPEC agreed to cut output in November, as US shale confounds the producer group’s attempts to prop up prices.

Regards.
Eric Streso

Eric Streso

You get recession, you get stock market declines. If you don’t understand that’s going to happen, then you are not ready and you will not do well in the markets.

Peter Lynch

In April, the Standard Bank South Africa Purchasing Managers’ Index (PMI) moved closer to 50.0, but for April remained above this neutral mark for the eighth month running. According to the latest index report, this signals the longest sequence of overall improvement in operating conditions in over four years.

Eric Streso
Eric Streso
Eric Streso holds 2 Law degrees, an international MBA in Financial Services, and is a Certified Financial Planner through the FPI. He has more than 20 years of experience in all aspects of financial planning. Eric is a passionate teacher; he lectures at a local Business School which certifies and qualifies financial service practitioners. He has held Senior Executive positions at Sanlam, PWC and mCubed.

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