July 2023 Update
F&A Monthly Update | JuLY 2023
Time for another monthly update! As always, we've put together a snapshot of market insights from PortfolioMetrix to bring you an overview of where your investments are headed. Here's your July 2023 update!
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Richard and the F&A team
July 2023 Update
This month's piece is compiled by Brendon de Jongh, SA Head of Research - PortfolioMetrix.
GLOBAL UPDATE
July saw further falls in global inflation and generally positive economic data, leading to positive market sentiment and strong returns overall, particularly in riskier asset classes. Commodities also picked up as the oil price rallied, and certain agricultural commodities rose because of Russia’s cancellation of the Black Sea grain export deal. The fall in developed market inflation and relatively resilient GDP data raised hopes for a soft landing and provided an underpin to a month of good returns across asset classes and regions.
LOCAL UPDATE
The generally upbeat global environment had a strong positive influence on South African asset classes with the rand continuing to strengthen, local bond yields falling and equities rallying over the month. South African equities were the best performing asset class with the financials index driving returns on the local bourse. Local bonds and property also had a good month as we saw the strongest daily inflow into the local bond market on record and foreigners turned to net buyers. The strengthening currency negatively impacted global asset class returns with global bonds the worst affected.