BBB Ep 35 - Oil price drops sharply as China admits economic woes; US market buoyancy continues; SA banks firm up; Rand weakens

The oil price dropped almost $4 a barrel overnight as the consequences of China's zero-Covid approach to the virus continued to knock its economy. While most of the world, including SA, is now tightening monetary policy to squeeze out higher inflation, China has the opposite problem and yesterday cut two key interest rates in an attempt to warm up an ice cold economy. On Wall Street, the main driver of the market is expectations on inflation. These appear to have changed from fretting about it becoming structural to only transitory - ie a temporary challenge that will soon be overcome. That has further extended a rally in share prices that began in mid-June. On the JSE, big bank shares rose yesterday in sympathy with Absa after it released strong interims results.SA’s top banking analyst on Absa after interim results: Shares still cheap, 50% upside in next two years Learn more about your ad choices. Visit megaphone.fm/adchoices