Week in Review: Robust U.S. Data Drives Stocks to Record Highs

With the August 1 deadline nearing, U.S. trade talks continue. President Trump announced a deal with Indonesia involving the purchase of Boeing jets, energy, and agricultural goods, while setting U.S. import tariffs at 19%, down from a proposed 32%. U.S. exports to Indonesia will remain tariff-free, and the deal may serve as a model for other Southeast Asian countries. Meanwhile, Trump threatened 30% tariffs on the EU and Mexico, pressing for reduced barriers and tougher action on narcotics. The EU is preparing countermeasures and Canada’s PM Carney said a deal is close, though avoiding all U.S. tariffs may be unlikely.

Market Moves of the Week

The All-Share Index rose by 1.51% this week, boosted by Financials (+3.23%). The local currency strengthened against the U.S. dollar, moving to R17.73/$ from last week’s R17.93/$ level. SA government bond yields moved lower on the week, dipping 0.10%.

Chart of the Week:

Are tariffs at last beginning to push up inflation? Core goods inflation had been negative for many years before the post-pandemic spike. Its current rate is the highest in more than a decade, outside of that spike. Source: Bloomberg. Credits: Strategiq