The JSE was weaker on Wednesday morning, with global peers mixed as a rally sparked by less dovish comments by the US Federal Reserve ran out of steam.
Comments by US Fed vice-chair Philip Jefferson and Fed Bank of Dallas president Lorie Logan that indicated that the recent sell-off in bonds might negate the need for any further interest-rate hikes, were received as dovish by investors. This saw the US bond yields ease from recent highs, supporting risky assets.
Investors are now looking ahead to the US producer and consumer inflation numbers to be released on Wednesday and Thursday, respectively, for further insights on the future direction of the monetary policy.
“A slight dovish tilt from Fed officials over the last couple of days has seen risk appetite improve over the last few days,” TreasuryOne currency strategist Andre Cilliers said.
“The Israeli-Palestinian conflict is not having any real impact on markets at the moment, with markets more focused on lower US bond yields and upcoming inflation data,” Cilliers said.
At 10.15am, the JSE all share had lost 0.39% to 73,549.93 points and the Top 40 was down 0.41%. Retailers had gained 1.36% and food producers 0.62%. Industrial metals had lost 1.1%, resources 0.65%, precious metals 0.6%, banks 0.59%, financials 0.41%, industrials 0.18% and SA listed property 0.11%.
In Europe, France’s CAC 40 was down 0.73% and Germany’s DAX 0.13%.
In Asia, the Shanghai Composite gained 0.12%, Hong Kong’s Hang Seng 1.55% and Japan’s Nikkei 0.6%.
At 10.02am, the rand had strengthened 0.16% to R18.9642/$, 0.25% to R20.083/€ and 0.2% to R23.2746/£. The euro was little changed at $1.0595.
Gold gained 0.46% to $1,868.7/oz and platinum 0.65% to $888.2/oz. Brent crude was 0.18% firmer at $87.76 a barrel.
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