The JSE was firmer on Thursday morning, with its global peers mostly firmer, as investors attempt to shrug off the first batch of gloomy corporate earnings from the US.
Locally, the focus turns to the outcome of the SA Reserve Bank’s monetary policy committee (MPC) meeting. Analysts expect the MPC to raise rates by 50 basis points (bps), though say there is also a strong possibility for a 25bp increase.
“Economists will be monitoring the governor’s comments post the announcement for clues as to how close we are to the top of the current rate hiking cycle,” said TreasuryONE currency strategist Andre Cilliers.
Market participants will also deal with the US fourth-quarter GDP data, due out later on Thursday, with growth expected to have dropped to 2.6% from 3.2% in the third quarter as the Federal Reserve’s aggressive rate hikes take effect.
“US GDP data will likely cement the view that the Fed will start slowing the pace of its rate hikes,” said Citadel Global director Bianca Botes. “Meanwhile, subdued earnings and guidance from US corporates, coupled with massive tech-sector layoffs, has intensified fears of an economic downturn in the world’s largest economy.”
At 10.25am, the JSE all share had gained 0.95% to 80,484 points and the top 40 1.06%. Industrials had risen 1.33%, financials 0.91%, banks 0.69%, precious metals 0.6%, resources 0.49% and industrial metals 0.39%.
At the same time in Europe, the UK’s FTSE had added 0.26%, France’s CAC 0.70% and Germany’s DAX 0.28%.
At 10.40am, the rand had strengthened 0.22% to R17.0671/$ and 0.21% to R18.638/€, while it was little changed R21.1905/£. The euro was unchanged at $1.092.
Gold lost 0.10% to $1,944.87/oz and platinum 0.33% to $1,035.10/oz. Brent crude was 0.37% weaker at $85.86 a barrel.
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