WM Market Update – July 2015
Global
In spite of concerns over a possible Greek default and subsequent exit from the Euro as well as the declining growth rate of the Chinese economy, developed markets continued to deliver positive returns in July aided by a constant fall in oil prices. Unfortunately emerging markets did not fare as well registering negative returns with currency weakness exerting even further downward pressure.
Domestic
The JSE reacted, along with global markets, to the Greek monetary crisis but more importantly came under severe pressure from not only a sharp decline in commodity prices but also a sharp fall-off in demand from a slowing Chinese economy. In spite of the local currency trading at a 14 year low at R12.65/$, it did little to prevent resource stocks from being hammered.
