Events that moved the market Q1 2017
The first quarter of 2017 had its fair share of market-moving news.
In South Africa, National Treasury showed its commitment to reducing the country’s debt levels and introduced a new 45% income tax bracket, as well as higher dividends tax and CGT inclusion rate. Also in Q1, inflation eased, the current account deficit narrowed and the SARB signalled that it’s likely reached the end of its interest rate hiking cycle, all boding well for the local economy. That was until Finance Minister Gordhan and others were dismissed abruptly, leading to a credit downgrade for SA.
Internationally, there are signals of a recovery in Europe and the wave of optimism interspersed with moments of reality around the extent of President Trump’s powers are also driving global stock markets.
What else happened during the quarter?