The JSE was firmer on Wednesday morning and European markets were generally lower as investors mulled over conflicting data a day earlier on the state of the US economy.
The Bureau of Labour Statistics’ latest Job Opening and Labor Turnover Survey (JOLTS) revealed the US economy ended July with the fewest number of job openings since March 2021 — signalling that the US labour market is cooling.
However, the US Consumer Confidence Index as measured by the Conference Board came in at 106.1 — well below the market estimate of 116. The Conference Board also said average inflation expectations for the next 12 months had increased, pressuring overall confidence, while the short-term outlook for income, business and labour market conditions declined, Bloomberg reported.
The data sets come ahead of two other key reports due this week — the broader nonfarm payrolls report, and personal consumption expenditures (PCE) price index (the Federal Reserve’s preferred measure of consumer inflation) — that will shed further light on the job market and inflation.
“US JOLTs job openings data falling to a 30-month low, raised hopes of no further rate hikes by the Fed and supporting sentiment,” said TreasuryONE currency strategist Andre Cilliers. “Today’s ADP Nonfarm Employment Change [an independent measure of the US labour market] and Friday’s payroll data will provide further clues to the state of the US labour market.”
At 11.10am, the JSE all share had gained 0.33% to 75,024.45 points and the top 40 0.29%. Industrial metals were up 0.83%, financials 0.59%, banks 0.56%, resources 0.2% and industrials 0.25%.
In Europe, France’s CAC 40 was down 0.47% and Germany’s DAX 0.46%, but Londons FTSE 100 was 0.1% firmer.
In Asia, the Shanghai Composite and Hong Kong’s Hang Seng ended the session little changed, while Japan’s Nikkei gained 0.33%.
At 10.02am, the rand had weakened 0.3% to R18.5349/$, 0.1% to R20.1224/€ and 0.26% to R23.4255/£. The euro was 0.19% weaker at $1.0857.
Gold was little changed at $1,936.17/oz, while platinum was up 0.52% to $980/oz. Brent crude was 0.42% firmer at $85.20 a barrel.
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