The Ewing Trust Quarterly News

The local and global markets enjoyed some positivity, as central banks kept interest rates on hold. There is a glimmer of hope that inflation, globally, may be getting under control, which could in time, lead to interest rate cuts.

The last quarter under review saw continued increases in interest rates by central banks, in order to combat the rampantly high inflation environment globally.

The first financial quarter of the year has proved to be volatile despite one of the fastest increasing interest rate cycles in history as inflation remains stubbornly above most Central Bank target ranges.

The financial year under review was a difficult one for the global economy, which has been driven by higher than expected global inflation. This was further fueled by the Central Banks raising interest rates which dried up liquidity. Combined with a global reduction in stimulus, global markets have vacillated in reaction to all of these factors.

We believe that we are not yet at the end of the interest rate hiking cycle, central banks and Governments are seeing a tempering of the rampant inflation as a result of the rapid increase in interest rates.

South African equities remained resilient up until a late sell-off of risk assets near the end of August, which followed the announcement by the US Federal Reserve of their intention to aggressively increase interest rates until inflation is brought back under control