The JSE was firmer on Wednesday morning, while its global peers were mixed as investors awaited the US Federal Reserve policy meeting outcome announcement.
Investors are awaiting the conclusion of the two-day federal open market committee (FOMC) meeting, which began on Tuesday, to see if the Fed will provide clues about when it will end its rate-hiking campaign.
Market participants are pricing in another 25 basis point (bps) interest-rate hike on Wednesday, and will be looking to Fed chair Jerome Powell’s media conference for clues on whether the world’s most influential central bank will keep rates steady after this meeting or tighten further to fight decades-high inflation.
“The decision for the FOMC to raise by 25 bps has already been baked into the market, and more eyes will be trained on the press conference afterwards,” said TreasuryOne currency strategist Andre Cilliers.
“Markets are awaiting any news on the forward guidance from the Fed and if they can be any wiser regarding a Fed pivot in 2023,” added Cilliers.
At 10.25am, the JSE all share had gained 0.51% to 77,926.38 points and the top 40 was up 0.59%. Precious metals had added 1.68%, resources 1.04%, industrial metals 0.76% and industrials 0.71%. Financials had lost 0.53% and banks 0.38%.
At the same time in Europe, France’s CAC 40 had gained 0.57% and Germany’s DAX 0.49%.
Earlier in Asia, the Shanghai Composite added 1.14%, while Hong Kong’s Hang Seng and Japan’s Nikkei were closed, with tight liquidity expected
At 10.45am, the rand had strengthened 0.58% to R18.3554/$, 0.2% to R20.2683/€ and 0.13% to R22.9941/£. The euro was 0.41% firmer at $1.1045.
Gold was little changed at $2,016.13/oz, while platinum gained 0.53% to $1.070.60/oz. Brent crude was 1.94% weaker at $73.70 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.