Sanlam Private Wealth, Market Commentary, 3 December 2024

Local Markets

The Johannesburg Stock Exchange closed higher on Monday, with the Top 40 index rising 1.61% to 77,278 points and the All Share index gaining 1.44% to 85,731 points. South Africa`s manufacturing activity declined in November due to fluctuating demand, while vehicle sales grew by over 8%. Investors are now focused on the release of Q3 GDP data for economic insights. Meanwhile, S&P Global Ratings placed Transnet on CreditWatch, citing concerns over its financial outlook, though it retained the company`s `BB-` credit rating and affirmed its national scale ratings at `zaAA-/zaA-1+`.

American Markets

On Monday, the Nasdaq and S&P 500 reached record highs, fuelled by tech stocks and strong November performance, while the Dow edged lower. Investors are closely watching upcoming economic data, including Friday`s key jobs report. Federal Reserve Governor Christopher Waller hinted at a possible interest rate cut at the December meeting, citing restrictive monetary policy. Meanwhile, the ISM reported improved U.S. manufacturing activity in November. Other anticipated data this week include private sector job growth, the ISM services report, and weekly jobless claims.