The JSE was firmer on Tuesday morning, along with its global peers, as global stocks recovered amid slightly steadier investor sentiment than last week.
The expectation of much higher interest rates in the future and even more difficult economic conditions prompted the sell-off, with investors now having to come to terms with central banks that are willing to risk recession to get on top of inflation.
Focus will be on commentary from the US Federal Reserve policymakers later in the week, while SA inflation numbers for May are due on Wednesday.
“Even though sentiment seems steadier at the moment, there has been little change in the prevailing market environment and sentiment. Investors continue to focus on global inflation and interest rates,” said Citadel Global director Bianca Botes.
“Market sentiment will be largely driven by economic data and that, in turn, sets the tone for the US Federal Reserve’s monetary action,” said Botes.
At 9.30am, the JSE all share had gained 1.29% to 67,187.16 points and the top 40 1.3%. Banks had gained 1.73%, financials 1.54%, industrials 1.42%, industrial metals 1.06%, resources 0.83% and precious metals 0.36%.
At the same time in Europe, London’s FTSE 100 had gained 0.29%, France’s CAC 40 0.76% and Germany’s DAX 0.6%.
Earlier in Asia, the Shanghai Composite was down 0.26%, while Hong Kong’s Hang Seng added 1.56% and Japan’s Nikkei 1.84%.
At 9.10am, the rand had strengthened 0.18% to R16.0017/$, while it was 0.16% weaker at R16.8621/€ and lost 0.24% to R19.664/£. The euro was 0.25% firmer at $1.0536.
Gold lost 0.33% to $1,832.81/oz, while platinum gained 0.67% to $941.29. Brent crude was 0.53% firmer at $114.79 a barrel.
With Karl Gernetzky
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