The JSE was little changed on Monday morning, while its global peers were mixed at the start of a pivotal week for markets, which will include interest-rate decisions by central banks including the US Federal Reserve.
The Fed will deliver its sixth interest rate increase of the year at its policy meeting on Wednesday, with markets expecting another 75 basis-point hike. Investors will closely watch for any comments and the address by chair Jerome Powell to gauge what the Fed might do next.
“It’s all eyes on the Fed this week, with markets bracing for another 75bps hike as the central bank continues to fight inflation,” said Citadel Global director Bianca Botes.
“The markets are jittery ahead of the Fed’s federal open market committee (FOMC) meeting, with the dollar settling close to 20-year highs, while US treasury yields sit at highs last seen in 2008. However, expectations are starting to grow that the pace of hikes will start to slow,” said Botes.
At 10.55am, the JSE all share and the top 40 were little changed, with the former at 66,420 points. Banks had lost 1.03%, industrial metals 0.9%, financials 0.84% and resources 0.63%.
At the same time in Europe, London’s FTSE 100 lost 0.11% and France’s CAC 40 0.34%, while Germany’s DAX was little changed.
Earlier in Asia, the Shanghai Composite fell 0.77% and Hong Kong’s Hang Seng 0.98%, while Japan’s Nikkei gained 1.78%.
Meanwhile, the Chinese October purchasing managers’ index (PMI) data surprised to the downside, as the country continues to impose its zero-Covid-19 policy.
“On the back of this, emerging-market currencies are under pressure in mid-morning trade. This is more of an emerging-market currency story as the dollar is trading weaker against other major currency pairs,” sad TreasuryONE currency strategist Andre Cilliers.
At 11.12am, the rand had weakened 0.93% to R18.2751/$, 0.49% to R18.1382/€ and 0.57% to R21.122/£. The euro was 0.34% weaker at $0.9928.
Gold lost 0.45% to $1,636.76/oz and platinum 1.21% to $931/oz. Brent crude was 0.91% weaker at $93.28 a barrel.
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