The JSE was firmer on Monday morning, while global markets were mixed with focus this week on US inflation data and the release of the Federal Reserve's last meeting minutes.
Meanwhile, investors are closely watching the geopolitical tension in the Middle East where Palestinian militants launched an “unprecedented surprise attack” on Israel over the weekend.
On Friday, key US jobs data — nonfarm payroll — came in stronger than expected, cementing the case for another interest-rate hike and for the Fed to keep rates higher for longer.
Friday’s data is the last key payroll report the Fed will get before it makes its next decision on interest rates at the end of October, with the federal open market committee (FOMC) meeting ending on November 1.
This week, investors will get an insight into inflation in the US, with consumer and producer inflation data expected to be released on Wednesday and Thursday, respectively.
Also, the Fed will release meeting minutes from its latest FOMC meeting on Wednesday.
“Data on Friday suggested that the US economy generated more jobs than expected in September, further complicating the Fed’s choice on whether to raise rates further this year,” said UBS Global Wealth Management CIO Mark Haefele.
“This uncertainty contributed to heightened volatility in both equity and fixed-income markets, which will likely continue this week amid the Hamas-Israel conflict,” added Haefele.
At 10.35am, the JSE all share had gained 0.45% to 71,976.73 points and the top 40 was up 0.45%. Precious metals rose 4.33%, resources 1.49%, food producers 0.92%, retailers 0.41%, financials 0.33% and banks 0.2%. Industrial metals had lost 0.79%, SA listed property 0.31% and industrials 0.14%.
In Europe, France’s CAC 40 was down 0.33% and Germany’s DAX 0.42%.
In Asia, the Shanghai Composite lost 0.44% and Japan’s Nikkei 0.26%, while Hong Kong’s Hang Seng gained 0.19%.
At 11.01am, the rand had weakened 0.39% to R19.371/$, while it was little changed at R20.4206/€ and R23.5881/£. The euro was 0.41% weaker at $1.0542.
Gold gained 0.97% to $1,850.35/oz and platinum 0.96% to $886.8/oz. Brent crude rose 2.97% to $86.88 a barrel.
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