Animal Spirits

The South African (SA) stock market fell for only the third time in the past 18 months in April, as risk appetite soured globally.
There were few places to hide on the local bourse, though coal exporter, Thungela, continued to benefit from surging global energy prices, with the stock up 48% MoM and 222% higher YTD, having risen elevenfold since listing less than a year ago. Sasol, the other local beneficiary of higher energy prices, was up 11% MoM.
We’ve started May with most global markets giving in to the bears, bonds rising, the dollar strengthening and central banks eating lots of humble pie.
The diary is full of Fed speakers this week, which will give them plenty of opportunity to keep up the hawkish chorus.

Let’s find out what the animal spirits are telling us with Chris Holdsworth, chief investment strategist at Investec Wealth and Investment