The JSE was weaker on Tuesday morning, with its global counterparts mixed as investors await US consumer price index (CPI) data later.
US inflation data could affect how quickly the Federal Reserve tapers stimulus. Investors will monitor the inflation data for any indication of what the Federal Reserve might do in its September meeting.
Market participants have been split for months on the trajectory of US inflation, with some arguing the recent spike is temporary because it was fuelled by the reopening of the US economy. Fed chair Jerome Powell has reiterated that price increases are likely to slow.
“Any indication that inflation is not as transitory as the central bank currently believes could pile on the pressure to remove stimulus more aggressively and cause some distress in the markets, something investors are very sensitive to,” said Oanda senior market analyst Jeffrey Halley.
“We’ll have to rely on the data to form our opinions on what the Fed will decide next week and in the final months of the year, starting with the inflation readings later today,” said Halley.
At 9.55am, the JSE all share had lost 0.58% to 64,277.19 points and the top 40 0.61%. Precious metals had fallen 1.67%, resources 1.23% and industrials 0.48%. Banks had gained 0.14% and financials 0.13%.
At the same time, the FTSE 100 had lost 0.15% and France’s CAC 40 0.36%, while Germany’s DAX had gained 0.15%.
Earlier, the Shanghai Composite fell 1.42% and Hong Kong’s Hang Seng 1.18%, while Japan’s Nikkei 225 gained 0.73%.
At 9.25am, the rand was little changed at R14.1465/$, while it had weakened 0.16% to R16.7286/€ and 0.18% to R19.6046/£. The euro was 0.16% firmer at $1.1827.
Gold lost 0.22% to $1,789.33/oz and platinum 0.50% to $957.66. Brent crude added 0.64% to $74.11 a barrel.
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