It is the start of the new year and the markets seem “ jittery” according to Nigel Green, the CEO of asset manager the deVere Group.
He argues that this nervousness, after coming off a strong pan-markets year-end rally, should underscore that investors must avoid complacency.
According to Green, US markets mostly dropped on the first day of trading of 2024, with the Nasdaq Composite having its worst day since October, with US futures looking to the downside on Wednesday.
“Overnight, Asia-Pacific markets fell also, with stocks in South Korea and Taiwan leading the losses.Meanwhile, European markets were headed into a negative open on Wednesday too,” he noted
“This oscillation in market sentiment, driven by various factors including tensions in the Red Seam a key global trade route - serves as a stark reminder that investors must avoid complacency in the face of uncertainty. The year-end rally, characterised by a surge in global markets, had fuelled optimism among investors,” he said.
“Buoyed by some positive economic indicators, robust corporate earnings, and promising developments in various sectors, many believed that the momentum would seamlessly carry into the New Year.”
Green goes on to ague that despite the abrupt shift in market dynamics at the onset of 2024 has underscored the fickle nature of financial markets and the need for a cautious approach.
THE RAND AND GOVERNMENT BONDS
SA's Rand was firm on Thursday morning and was rebounding a bit after a very week start in 2024, according to Reuters.
It should be noted that the US Dollar has not changed much.
At 11am, the rand traded at R18.61 against the Dollar.
The Rand was trading at R23.68 to the Pound and trading at R20.43 to the Euro.
ETM Analytics said that Rand’s lack of resilience can be attributed to domestic factors such as the energy and Transnet crisis.
Reuters also notes that SA’s benchmark 2030 government bond was stronger in early deals, with the yield down 8 basis points to 9.8 percent.
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