The JSE was firmer in morning trade on Wednesday as investors await the latest US consumer inflation data scheduled for release later in the day.
Economists surveyed by Bloomberg forecast that the annual rate of inflation in the world’s biggest economy slowed to 3.1% in June from 4% a month earlier, and core inflation — which excludes food and energy — to 5% from 5.3%.
Still, markets have priced in another 25 basis-point increase at the Federal Reserve’s July 25-26 meeting, but investors are unsure what could follow in subsequent meetings after robust jobs market data last week.
“Markets are positioning for a softer inflation reading today, which will cement bets for an end to interest rate hikes,” said Citadel Global director Bianca Botes.
At 11.04am the JSE all share was 0.83% higher at 75,500.73 points higher and the top 40 0.63%. Industrial metals had added 1.47%, resources 1.03%, financials 0.77%, banks 0.69%, precious metals 0.5% and industrials 0.26%.
In Europe, London’s FTSE 100 rose 0.99%, France’s CAC 40 0.75% and Germany’s DAX 0.78%.
In Asia, the Shanghai Composite closed 0.78% lower and Japan’s Nikkei 0.81%, but Hong Kong’s Hang Seng rose 1.08%.
At 10.32am, the rand was little changed at R18.4798/$, R20.3703/€ and R23.9096/£. The euro was 0.15% firmer to $1.1023.
Gold gained 0.23% to $1,935.94/oz and platinum 1.2% to $935.10/oz. Brent crude was 0.32% firmer at $79.59 a barrel.
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