Although PMI picked up, oil prices began surging and the Rand has fallen back, raising concerns of fuel price increases again.
Although PMI picked up, oil prices began surging and the rand has fallen back, raising concerns of fuel price increases again.The week’s economic data was mixed, with the Absa Purchasing Managers’ Index a bright spot pointing to a rebound in manufacturing activity, while the rand slipped after trading close to the R17/dollar level early in the week and new vehicle sales underperformed.
Botes points out that gold remained near $2,655/ounce, benefitting from its status as a safe-haven asset amid the Middle East conflict. “However, gains were tempered by strong US labour data, which reduced expectations of a lenient monetary policy from the Fed.” “It is uncertain if the oil price will stay this high or once again drop back, as OPEC+ does have significant spare capacity and could easily ramp up production in the case of supply not meeting demand.”
“However, despite monthly declines in August and September, a big increase in July means that vehicle sales were up in the third quarter compared to the second quarter. This bodes well for gross domestic product .” “Mineral product shipments, which are predominately made up of crude products, have contracted every month since March, reflecting the moderation in global oil prices. However, some renewed upside pressure could materialise due to the constant escalation in tensions in the Middle East.
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