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    Omanyano ovanhu koikundaneki yomalungula kashili paveta, Commisiner Sakaria takunghilile Veronika Haulenga

Business / Economics

5 August 2024 Morning Biz News: July Retail Basket Costs Drop, Rand Strengthens, and Markets React to Economic Uncertainty

todayAugust 5, 2024 12

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In July, OK Foods saw a notable decrease in basket costs, dropping by 9.9%, as reported by The Brief. Conversely, Choppies experienced a rise of 4.7% in basket costs. Other major retailers also reported price reductions, with Spar offering the lowest price for Top Score 5kg. Among hypermarkets, Woermann Brock emerged as the most affordable, while Metro saw the highest increase in basket costs.

On Friday, the South African rand strengthened to 18.24 against the U.S. dollar, buoyed by U.S. economic data that indicated slower job growth and a higher unemployment rate. This development heightened expectations of a potential Federal Reserve rate cut, which put pressure on the dollar. The rand was up approximately 0.2% from its previous close, while the dollar fell over 1% against a basket of currencies.

In commodity markets, oil prices hovered near eight-month lows this morning. Concerns over a potential U.S. recession, which could impact global oil demand, outweighed fears that escalating tensions in the Middle East might disrupt supplies from the world’s largest oil-producing region.

Asian share markets experienced significant declines on Monday, as investors pulled back from risk assets amid recession fears. Nasdaq futures plunged 2.27%, S&P 500 futures fell 1.41%, EUROSTOXX 50 futures decreased by 0.6%, and FTSE futures dropped 0.2%. In contrast, bonds rallied as investors anticipated the need for swift interest rate cuts to support economic growth.

Financial Indicators:

  • Namibia Dollar: 18.27 to the US$
  • Namibia Dollar: 19.94 to the Euro
  • Namibia Dollar: 23.39 to the Pound
  • Gold: $2,442.80 per fine ounce
  • Brent Crude: $76.81 per barrel
  • Bitcoin: $995,943.45

Written by: Leonard Witbeen

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