The JSE was weaker on Tuesday, while its global peers were mixed as a rally that sent the all share to a record high in the last session ran out of steam.
The all share accelerated to a record high on Monday on bets that the Federal Reserve may reduce the pace of its rate hikes and the reopening of China’s economy.
This week market participants are set to get further insights into inflationary pressures and the economy when US Federal Reserve chair Jerome Powell speaks on Thursday, with US consumer price index (CPI) data expected to be released the same day.
“Whether the move [equities’ and rand’s moves] will be sustained may come down to what happens with US inflation data later this week,” said RMB analysts.
“US inflation is expected to drop sharply, which could hold implications for US monetary policy. A larger-than-expected drop might quickly soften expectations for further hikes and detract from the US dollar. Thursday will therefore be a key trading session.”
At 10.10am, the JSE all share had lost 0.87% to 77,656 points and the top 40 0.94%. Banks had lost 1.56%, financials 1.25%, precious metals 0.93%, resources 0.88%, industrial metals 0.81% and industrials 0.74%.
At the same time in Europe, France’s CAC 40 had gained 0.68% and Germany’s DAX 1.25%.
Earlier in Asia, the Shanghai Composite was down 0.21% and Hong Kong’s Hang Seng 0.35%, while Japan’s Nikkei gained 0.78%.
At 9.56pm, the rand had weakened 0.22% to R16.9742/$, 0.17% to R18.2131/€ and 0.05% to R20.6321/£. The euro was little changed at $1.0729.
Gold was unchanged at $1,871.72/oz, while platinum had lost 0.84% to $1,074.40/oz. Brent crude fell 1.08% to $78.90 a barrel.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.