The JSE was on track to break a three-day losing streak on Friday, firming amid mixed global peers as investors digested mixed signals from the US and China.
Investors remain cautious over poor economic data from China and the prospect of the Federal Reserve keeping interest rates higher for longer.
Better-than-expected trade data from China in August failed to ease market concerns about the health of the second-largest economy as exports fell almost 9% and imports dropped just more than 7%. While not as dire as predicted, economists expect external demand to remain soft in the coming months.
The data follows news of the country’s services activity expanding at the slowest pace in eight months in August, reflecting weak demand and prompting questions about demand globally.
In the US, data point to a resilient economy, supporting the case that the Federal Reserve will need to keep interest rates higher for longer. Meanwhile, oil prices being at elevated levels add to inflationary risks, which makes central banks’ fight against inflation complicated.
US weekly jobless claims came in at 216,000 on Thursday, compared with the 230,000 expected, supporting the idea that the labour market remains strong.
“Stock markets are faced with various challenges this morning and traded in a mixed fashion overall,” said RMB analysts.
At 10.15am, the JSE all share had gained 0.3% to 73,404.05 points and the top 40 0.31%. Retailers had added 1.25%, food producers 1.13%, financials 0.49%, industrials 0.47%, banks 0.34%, precious metals 0.21% and SA listed property 0.18%. Industrial metals had lost 0.14% and resources 0.12%.
In Europe, France’s CAC 40 had gained 0.17% and Germany’s DAX 0.22%.
In Asia, the Shanghai Composite lost 0.18% and Japan’s Nikkei 1.16%.
At 10.02am, the rand had strengthened 0.51% to R19.0764/$, 0.33% to R20.4272/€ and 0.34% to R23.8369/£. The euro was 0.11% firmer at $1.0709.
Gold gained 0.23% to $1,923.82/oz, while platinum was little changed at $902.8/oz. Brent crude was unchanged at $89.73 a barrel.
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