Monthly global market outlook | August 2020

The month of July saw local equities continuing their positive run as they shrug off a rise in local coronavirus infections and deaths. The FTSE/JSE All Share Index was up 2.56% on a total return basis driven by resources (+9.04%), telcos (8.21%) and financials (0.45%). Industrials (-2.57%) and consumer goods (-4.94%) were the worst performing sectors. The benchmark 10-year government bond yield was wobbly during July but closed marginally lower at 9.24% (June: 9.26%). Gold had a stellar performance on the back of an accommodative monetary policy coupled with investors’ hedging against tail risks in the market.