The JSE was firmer on Monday morning, while its global peers were mixed as investors digested the effects of a hotter-than-expected US jobs report on US Federal Reserve rate hikes and the reopening of the Chinese economy.
Chinese authorities accelerated a shift towards reopening the economy, with Shanghai and Hangzhou — home to tech giant Alibaba — easing some Covid-19 restrictions after protests last weekend. These two cities join other top-tier cities such as Beijing in relaxing curbs in recent days.
US nonfarm payrolls came in higher than expected on Friday, leaving investors scratching their heads about the effect that that would have on the Fed’s slowing the pace of interest-rate hikes at its next policy meeting.
“Prospects of China reopening has bolstered risk appetite, which is further weighing on the dollar. Many Chinese cities eased restrictions on Sunday,” said Citadel Global director Bianca Botes.
“Closer to home, uncertainty remains rife as the Phala Phala situation sees the presidency hanging in the balance,” said Botes.
At 10.10am, the JSE all share had gained 1.41% to 75,370 points and the top 40 was up 1.49%. Banks had risen 2.39%, financials 2.15%, industrial metals 1.47%, precious metals 1.34%, resources 1.29% and industrials 1.22%.
At the same time in Europe, the UK’s FTSE 100 was little changed, while France’s CAC 40 had lost 0.23% and Germany’s DAX 0.31%.
Earlier in Asia, the Shanghai Composite gained 1.76%, while Hong Kong’s Hang rose 4.55% and Japan’s Nikkei 0.15%.
At 10.26am, the rand had strengthened 1.61% to R17.2646/$, 1.6% to R18.1899/€ and 1.64% to R21.1788/£. The euro was 0.11% firmer at $1.0543.
Gold and platinum were little changed $1,797.24/oz and $1,018.40/oz, respectively. Brent crude gained 0.13% to $86.01 a barrel.
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