Local fuel is set to rise this week

Wealth

Fuel is set to increase

With the price of Brent crude oil rising from $52 per barrel in early January to around $62 per barrel the past week, it should not come as a surprise that the price of local fuel is set to rise this week.

With the price of Brent crude oil rising from $52 per barrel in early January to around $62 per barrel the past week, it should not come as a surprise that the price of local fuel is set to rise this week. Petrol will increase by 7 cents per litre. The price of 0.05% sulphur diesel will increase by 1 cent per litre and that of 0.005% sulphur diesel by 2 cents a litre.

Risky assets rallied the past week in the wake of positive commentary from the US Federal Reserve. Policymakers would seem to go out of their way to reverse course after sending a more hawkish than intended signal to markets after their last meeting in mid-December, which was followed by a slide in stocks and a spike in credit spreads. The rand strengthened by 2.22% against the USD, 3.07% against the pound and 1.73% against the euro, as emerging markets came back into fashion. 

The US economy is still growing despite the downturn in the US equity markets. Nonfarm payrolls surged in January as the United States added 304 000 jobs compared with expectations of a 170 000 rise. 

While trade negotiators from the US and China met in Washington the past week, no breakthroughs were achieved. However, the stage was set for a meeting between Chinese president Xi Jinping and US president Donald Trump in late February. Should this signal the end of the trade wars, one could expect equity markets to rally. 

Local equity markets closed mixed, with the all-share index (ALSI) down 0.22%. The resources index gained a healthy 2.18%, financials closed 0.28% softer, and industrials lost 1.72%, mostly because of the stronger currency and weaker earnings from local retailers.

Electioneering for the elections in May is in full swing across the country. Some indications of what South Africans may expect in the budget will come out in the State of the Nation (SONA) speech on Thursday this week. 

 

Kind regards,

 

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Market data provided by I-Net | News article provided by Securitas with 4D Wealth

Fanie Wasserman, B. Com (Hons)(UJ), PDFP (UOVS), CFP®fanie@securitas.co.za
Johan Steyn, RFP®, Cell. 082 680 9510, johan@securitas.co.za
Albert van der LindeB. Com (US), B. Com (Hons)(UP), Cell. 076 087 3084, albert@securitas.co.za
Hannes Bresler, CFP®, B. Com (Hons)(UJ), Pr. Tech Eng, Cell. 082 823 7973, hannes@securitas.co.za
Michelle Kleinhans, 082 850 3092, michelle.kleinhans@securitas.co.za