The JSE was firmer on Monday morning, along with its global peers, with investors set for a data-packed week locally and abroad.
Locally, the Reserve Bank’s decision on interest rates is due on Thursday. Market views are mixed about whether the monetary policy committee (MPC) will raise rates 25 basis points (bps) or 50bps. According to RMB analysts, there is even an outside chance that the MPC will not increase them at all. “Our call is for 50bp, the last move in the cycle,” they said.
On Tuesday, preliminary purchasing managing index (PMI) data is being released across the globe — including in the US and Europe — while Thursday is the release of the US’s fourth-quarter 2022 GDP statistics.
“The PMI numbers will be closely watched as they will offer further insight into whether it is feasible to call for a soft landing rather than an outright contraction in the global economy in 2023,” said RMB analysts. “The broader consensus forecasts from Bloomberg are pointing to better performance for the US and eurozone.”
At 10.25am, the JSE all share had gained 1.11% to 80.150 points and the top 40 was up 1.16%. Banks had risen 1.7%, financials 1.52%, resources 1.44%, precious metals 1.4% and industrial metals 1.34%.
At the same time, the UK’s FTSE 100 had gained 0.21%, while France’s CAC 40 and Germany’s DAX were little changed.
Earlier in Asia, the Shanghai Composite added 0.76% and Japan’s Nikkei 1.33%. Hong Kong’s Hang Seng was closed for the Chinese new year holiday.
At 10.31am, the rand had weakened 0.5% to R17.1846/$, 0.86% to R18.7247/€ and 0.68% to R21.3123/£. The euro was 0.37% firmer at $1.0895.
Gold lost 0.16% to $1,922.14/oz and platinum 0.1% to $1,041/oz. Brent crude was 0.14% firmer at $87.70 a barrel.
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