The JSE is facing flat and lower Asian markets as world markets await the latest inflation data from the US to see what path the US Federal Reserve might take in terms of interest rate hikes.
An easing in inflation is expected, which could make a case for the US Fed to lower its recent rate of interest rate hikes.
Asian markets were somewhat lower with the Nikkei in Japan flat and the Hang Seng in Hong Kong down 0.23%. The Shanghai composite in mainland China retreated by 0.33%.
Tencent, which influences the JSE via Naspers and Prosus, dropped by 3.53% after a strong recent showing.
The markets in Hong Kong and China were negatively affected by concerns that travel during the Lunar New Year at the end of January will lead to a surge in Covid-19 infections, particularly in rural areas.
In local markets, the JSE firmed in line with global peers on Wednesday, with investors focused firmly on Thursday’s US inflation report, which many expect to be positive.
The benchmark all share index touched a record high of 78.925 points in intraday trade before ending the session 0.67% higher overall at 78.522 points. The top 40 added 0.77% — boosted by industrial metals (1.3%), industrials (1.1%) and resources (0.9%). Food producers, banks and financials were lower, easing 1.07%, 0.53% and 0.4%, respectively.
The release of US consumer price index (CPI) data on Thursday will give markets further insight into the US economy and offer more clarity on the Federal Reserve’s rate path.
US markets ended higher on Wednesday as the Nasdaq gained 1.76%, the S&P 500 1.28% and the Dow Jones 0.80%.
In commodities, the price of platinum rose by 0.51% to $1,074.43 and gold 0.46% to $1,883.90. Meanwhile, Brent crude was 0.29% lower at $82.68.
The rand was flat against the dollar, trading at R16.92/$.
The corporate calendar is empty for Thursday. In economic data, Stats SA will publish the November figures for the number of electricity units produced and consumed in SA, including how much was distributed by Eskom.
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