The JSE was firmer along with its global peers on Friday morning, as investors cheered strong company earnings in the US, while inflation fears were beginning to ease.
US producer inflation came in lower than expected on Thursday, rising 0.5% month on month, its slowest pace so far in 2021, while there were also some strong earnings reports from major US banks, further boosting sentiment.
“Stocks rallied after a strong round of earnings and a welcomed dip in core producer prices,” Oanda senior market analyst Jeffrey Halley said.
“Investors remain committed to stocks as the current inflationary environment won’t likely trigger a rapid interest-rate hiking schedule from the US Federal Reserve,” said Halley.
At 10am, the JSE all share had gained 0.14% to 66,940.15 points and the top 40 0.10%. Retailers had added 0.76%, financials 0.58%, banks 0.42% and industrials 0.22%. Precious metals lost 0.58%, industrial metals 0.36% and resources 0.17%.
At the same time, the FTSE 100 had gained 0.45%, France’s CAC 40 0.31% and Germany’s DAX 0.08%.
Earlier, the Shanghai Composite gained 0.40%, Hong Kong's Hang Seng 1.16% and Japan’s Nikkei 1.81%.
At 10.03am, the rand had strengthened 0.61% to R14.6921/$ and 0.45% to R17.0584/€, while it was flat at R20.1618/£. The euro was 0.14% firmer at $1.1611.
Gold lost 0.51% to $1,787.04/oz and platinum 0.31% to $1,057.99. Brent crude was up 0.77% to $84.77 a barrel.
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