Events that moved the market Q2 2022

EU countries agree to ban coal imports from Russia. The UN General Assembly votes to suspend Russia from the Human Rights Council, the first suspension since Libya in 2011.

Tencent shares surge, joining the rest of China’s gaming industry in a rally after regulators approved the country’s first batch of new titles in more than eight months.

Elon Musk offers $54.20 per Twitter share in cash, a 54 after the news breaks.

President Ramaphosa declares the floods in KZN, which destroyed 4 000 homes and killed over 400 people, a national state of disaster. The flooding also disrupted fuel lines and food supplies.

Netflix shares plunge 35%, its biggest drop since 2004, after the company announces a loss in subscribers and the move towards advertising.

The Fed delivers the biggest interest rate increase since 2000 – 50 bps - unleashing the most aggressive policy action in decades to combat soaring inflation.

US data shows that over the year the US CPI’s food index increased 9.4 later this year.

The SARB hikes the repo rate by 50 bps, the steepest increase since 2016. This takes the bank’s key rate to 4.75.

Globally, dividends surged 11

African Bank will acquire 100 of the preference shares issued by Grindrod Bank – a R1.5 billion deal.

Eurozone inflation accelerates to an all-time high of 8.1% year-on-year, intensifying the debate at the European Central Bank about how rapidly to raise interest rates.

Rajesh and Atul Gupta are detained by UAE law-enforcement. The arrests come a year after the UAE ratified an extradition treaty with South Africa.

SA GDP expands 1.9% in the first quarter of 2022. The size of the economy is now at pre-pandemic levels, with real GDP slightly higher than what it was before the pandemic.

The UK economy shrinks at the sharpest month-on-month pace in more than a year. Manufacturing, services and construction all contract together for the first time since January 2021.

The S&P 500 falls nearly 9 below its January highs. Also, the yield on 10-year Treasuries touches the highest level since 2011, and two-year rates the highest since the financial crisis.

The yen falls to a 24-year low as Japan’s easy monetary policy increasingly contrasts with developed peers hiking rates.

The Fed raises rates to a target range of 1.5-1.75 federal funds rate by year-end.

Annual inflation accelerates to 6.5 a month before. That’s the highest level since January 2017.

South Africa’s Health Minister Phaahla repeals the country’s last remaining coronavirus-related restrictions, such as the wearing of masks, curbs on gathering sizes and border checks for Covid.

Russia fails to keep up payments on $40 billion of outstanding bonds as it is effectively cut off from the global financial system and unable to send money to bondholders.

Naspers extends its gains after the announcement that Naspers and Prosus will steadily sell down their stake in Tencent and return the proceeds to shareholders via share buy-backs.

South Africa records FDI inflows of R27.2 billion in the first quarter of 2022, due to foreign entities increasing equity investments and granting loans to domestic subsidiaries.

EU countries agree to ban coal imports from Russia. The UN General Assembly votes to suspend Russia from the Human Rights Council, the first suspension since Libya in 2011.

Tencent shares surge, joining the rest of China’s gaming industry in a rally after regulators approved the country’s first batch of new titles in more than eight months.

Elon Musk offers $54.20 per Twitter share in cash, a 54 after the news breaks.

President Ramaphosa declares the floods in KZN, which destroyed 4 000 homes and killed over 400 people, a national state of disaster. The flooding also disrupted fuel lines and food supplies.

Netflix shares plunge 35%, its biggest drop since 2004, after the company announces a loss in subscribers and the move towards advertising.

The Fed delivers the biggest interest rate increase since 2000 – 50 bps - unleashing the most aggressive policy action in decades to combat soaring inflation.

US data shows that over the year the US CPI’s food index increased 9.4 later this year.

The SARB hikes the repo rate by 50 bps, the steepest increase since 2016. This takes the bank’s key rate to 4.75.

Globally, dividends surged 11

African Bank will acquire 100 of the preference shares issued by Grindrod Bank – a R1.5 billion deal.

Eurozone inflation accelerates to an all-time high of 8.1% year-on-year, intensifying the debate at the European Central Bank about how rapidly to raise interest rates.

Rajesh and Atul Gupta are detained by UAE law-enforcement. The arrests come a year after the UAE ratified an extradition treaty with South Africa.

SA GDP expands 1.9% in the first quarter of 2022. The size of the economy is now at pre-pandemic levels, with real GDP slightly higher than what it was before the pandemic.

The UK economy shrinks at the sharpest month-on-month pace in more than a year. Manufacturing, services and construction all contract together for the first time since January 2021.

The S&P 500 falls nearly 9 below its January highs. Also, the yield on 10-year Treasuries touches the highest level since 2011, and two-year rates the highest since the financial crisis.

The yen falls to a 24-year low as Japan’s easy monetary policy increasingly contrasts with developed peers hiking rates.

The Fed raises rates to a target range of 1.5-1.75 federal funds rate by year-end.

Annual inflation accelerates to 6.5 a month before. That’s the highest level since January 2017.

South Africa’s Health Minister Phaahla repeals the country’s last remaining coronavirus-related restrictions, such as the wearing of masks, curbs on gathering sizes and border checks for Covid.

Russia fails to keep up payments on $40 billion of outstanding bonds as it is effectively cut off from the global financial system and unable to send money to bondholders.

Naspers extends its gains after the announcement that Naspers and Prosus will steadily sell down their stake in Tencent and return the proceeds to shareholders via share buy-backs.

South Africa records FDI inflows of R27.2 billion in the first quarter of 2022, due to foreign entities increasing equity investments and granting loans to domestic subsidiaries.