The JSE was little changed on Wednesday, with its global peers mixed as investors wait to hear the US Federal Reserve’s policy decision later in the day.
Investors are concerned that rising inflation expectations might prompt the US Fed to signal that it will start raising rates sooner than expected when it announces its latest economic projections at the end of the federal open market committee (FOMC) meeting.
The Fed last updated its projections in mid-December, before the broad distribution of vaccines and US President Joe Biden's large fiscal aid package was signed into law.
“Today’s FOMC meeting is perhaps the most crucial in the last six months. For markets, the most important outcome relates to the Fed’s view on rising treasury yields. It is the uncertainty surrounding this issue that has engendered mixed trade on international markets,” said RMB market analyst Nema Ramkhelawan-Bhana.
At 9.40am, the JSE all share was little changed at 67,225.62 points and the top 40 was down 0.14%. The gold mining index had gained 0.43%. Platinum miners had lost 1.96%, banks 0.47%, financials 0.41% and resources 0.31%.
Earlier, the Shanghai Composite, Hong Kong’s Hang Seng and Japan’s Nikkei 225 were flat.
At 9.40am local time, the FTSE 100 had lost 0.25%, while Germany’s DAX 30 had gained 0.66%.
At 10.31am, the rand had weakened 0.42% to R14.9472/$, 0.59% to R17.7846/€ and 0.74% to R20.7962/£. The euro was little changed at $1.1899.
Gold gained 0.25% to $1,734.81/oz, while platinum was flat at $1,208.56. Brent crude was 0.47% weaker at $68.16 a barrel.
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