WATCH: Animal spirits

It was rough seas in local and global markets last week, with the JSE all share giving back 1.84%, driven largely by Monday’s heavy selling.

Inflation fears and interest rate hikes set the scene for sell-offs in growth counters, aided by the Ukraine-Russia standoff, which sparked alarm in the energy sector. Sasol ended the week just more than 10% higher.

Data out on Sunday showed that China’s factory activity slowed in January as a resurgence of Covid-19 and tough lockdowns hit production and demand.

Tension over Ukraine remain a thorn in the market’s side, with the concern that a Russian invasion would also cut vital gas supply to Western Europe.

To find what the animal spirits are telling us, Michael Avery is joined by Investec Wealth & Investment chief investment strategist Chris Holdsworth.