The JSE was firmer on Thursday morning, along with its global peers, after US debt ceiling deal boosted sentiment on Wall Street and on other markets.
Democrats have signalled that they will take up Senate Republican leader Mitch McConnell’s offer to raise the debt ceiling into December, a move that will alleviate the immediate risk of a default.
Senate majority leader Chuck Schumer said that the two sides were “making good progress” and that he hoped to have an agreement worked out as soon as possible.
“McConnell offered a short-term debt ceiling extension to the Democrats to December to allow them to use reconciliation to pass a more permanent measure,” said Oanda senior market analyst Jeffrey Halley.
“The announcement of a two-month ‘kick the can down the road’ offer was enough for desperate buy-the-dippers to reverse course and lift US equities into positive territory,” said Halley.
At 9.55am, the JSE all share had gained 0.57% to 64,352.07 points and the top 40 0.70%. Precious metals had risen 2.43%, industrial metals 1.28%, resources 1.39% and industrials 0.74%. Banks had lost 1.11% and financials 0.93%.
At the same time, the FTSE 100 was up 0.72%, France’s CAC 40 1.17% and Germany’s DAX 1.26%.
Earlier, Hong Kong’s Hang Seng gained jumped 2.99% and Japan’s Nikkei 0.54%. The Shanghai market was closed.
At 9.54am, the rand had strengthened 0.37% to R14.9262/$, 0.12% to R17.2686/€ and 0.24% to R20.2858/£. The euro was 0.10% firmer at $1.1566.
Gold was flat at $1,762.93/oz, while platinum lost 0.25% to $986.03. Brent crude was 1.98% weaker to $79.24 a barrel.
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