The JSE was firmer on Friday morning, while its global peers were mixed as investors await next week’s Federal Reserve policy meeting.
This week investors have been weighing the odds of a recession amid prospects that the US Federal Reserve will need to raise interest rates for longer than expected.
Market participants’ focus is now squarely on the Fed’s policy meeting for clues on interest hike projections. The Fed is widely expected to raise interest rates by 50 basis points (bps).
Though a 50bps increment will be smaller than previous increases, investors are concerned the Fed will undertake a series of smaller increases, ultimately bringing rates to a level higher than expected, as inflation could take some time to reach the central bank’s 2% target.
“Moving on to the day ahead, investors will focus on the US data calendar for direction,” said RMB analysts.
“Risks are, however, skewed to the downside in our view amid uncertainty over inflation, rising interest rates and expectations for a recession next year.”
At 9.45am, the JSE all share had gained 0.35% to 74,725 points and the top 40 0.38%. Industrial metals had added 1.29%, resources 0.55% and industrials 0.39%. Precious metals had lost 0.26% and banks 0.14%.
Earlier in Asia, the Shanghai Composite added 0.3%, Hong Kong’s Hang Seng 2.34% and Japan’s Nikkei 1.18%.
At 9.42am, the rand had strengthened 0.17% to R17.1182/$, 0.15% to R18.0813/€ and 0.09% to R20.9773/£. The euro was up 0.11% to $1.0569.
Gold gained 0.24% to $1,792.9/oz and platinum 0.53% to $1,009.8/oz. Brent crude was 0.1% firmer at $76.53 a barrel.
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