The JSE was firmer on Friday morning, while its global peers were mixed as investors focused on progress in the debt-ceiling talks in the US.
Republican House speaker Kevin McCarthy said on Thursday he was optimistic that negotiators could reach a deal to raise or suspend the debt ceiling in time to hold a vote on it next week.
That comes after Democrat President Joe Biden expressed confidence on Wednesday that negotiators would reach an agreement to avoid a default. Legislators and White House officials also have expressed cautious optimism, Bloomberg reported.
White House negotiators met McCarthy’s team to hammer out a deal that needs to pass the Republican-majority House and the Democrat-controlled Senate, ahead of a potential June 1 deadline, the earliest date the Treasury could run out of cash to pay debts, Bloomberg added.
“Financial market sentiment is in line to conclude trading today more upbeat, [on ...] hope that an agreement to raise the US debt ceiling will be put to the table for a vote next week,” said CompareBroker.io chief analyst Jameel Ahmad.
“This is one update that can bring some relief to all of us watching global markets, for as long as it avoids the prospect of the US running out of money in two weeks' time,” Ahmad said.
At 10.25am, the JSE all share had gained 0.44% to 78,007 points and the top 40 was up 0.45%. Precious metals had added 1.59%, resources 1.21%, industrial metals 0.98%, retailers 0.61%, food producers 0.34%, banks 0.3%, industrials 0.29% and financials 0.11%.
At the same time in Europe, France’s CAC 40 had gained 0.5% and Germany’s DAX 0.46%.
Earlier in Asia, the Shanghai Composite lost 0.42% and Hong Kong’s Hang Seng 1.32%, while Japan’s Nikkei gained 0.77%.
At 10.24am, the rand had weakened 0.25% to R19.3802/$, 0.33% to R20.8737/€ and 0.25% to R24.0321/£. The euro was little changed at $1.0777.
Gold gained 0.46% to $1,966.95/oz and platinum 0.57% to $1,054.5/oz. Brent crude was 0.3% firmer at $76.14 a barrel.
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