The Markets Daily

Markets seemed to be moderating after last week’s initial panic, but remain skittish to any negative news with Moderna suggesting a new vaccination may be needed and Jerome Powell cautioning that risks to the US economy from the new variant are to the downside. 

See omnystudio.com/listener for privacy information.

The World Health Organisation designated the new covid-19 variant, identified in South Africa, a variant of concern and dubbed it Omicron. This variant contains a number of mutations which has resulted in concerns around the severity of the disease and the efficacy of the vaccination resulting in a growing number of countries shutting borders to people travelling from Southern African countries, or imposing strict quarantine measures, other countries are closing their borders to all foreign travellers as Omicron is being identified in an increasing number of countries.

See omnystudio.com/listener for privacy information.

Today is Black Friday – a day renowned for its super sales – which started in the US (for the day after Thanksgiving) but has definitely become something of a global phenomenon. However, I feel in South Africa, Black Friday has a slightly different connotation today. 

See omnystudio.com/listener for privacy information.

I love a wave, growing up in Johannesburg, I was fortunate that my parents chose to do holidays all over South Africa, beach holidays, bush holidays and even visits to the Drakensberg. 

See omnystudio.com/listener for privacy information.

Focus remains on oil and monetary policy. The announcement of the release of strategic oil reserves by the US has officially been made with further announcements coming from India and the UK, while announcements are expected still from China, Japan and South Korea. 

See omnystudio.com/listener for privacy information.

As promised, President Joe Biden has announced his nomination for Chair of the FOMC before Thanksgiving – yesterday, to be precise. Despite muddying the waters somewhat by putting Lael Brainard in the mix, it would seem that the President decided to stick with the incumbent, Jay Powell

See omnystudio.com/listener for privacy information.

It has been a particularly busy November in SA, however, with the final MPC, the major policy events for the year were concluded and thus we can shift our focus to tying up loose ends before a well-deserved rest over the festive season. 

See omnystudio.com/listener for privacy information.

The SARB MPC raised the repo rate by 25bp to 3.75% at its final meeting for 2021. The balance of preferences was no longer unanimous, with three members of the committee preferring a hike and two voting for a hold. 

See omnystudio.com/listener for privacy information.

Oil prices are in the spotlight today – to be honest, for most of this year they have been playing a leading role in the narrative of inflation and economic growth alongside co-leads of covid-19 (this is almost a demotion after being the sole leading role of 2021) monetary policy and supply-chain shortages. 

See omnystudio.com/listener for privacy information.

After what was largely a quiet, sideways kind of day, US retail sales for October were released and produced the third consecutive month in which the print was higher than expected. This drove the dollar stronger and increased support for expectations for an earlier Fed funds hike as the print suggests that concerns over economic weakness have been possibly a little exaggerated. 

See omnystudio.com/listener for privacy information.