The JSE was firmer on Monday morning, with global peers mixed as investors look ahead to the Federal Reserve’s monetary policy decision this week.
The Fed will conclude its federal open market committee (FOMC) meeting on Wednesday where the central bank is widely expected to hold its benchmark interest rate at the same level.
With surging interest rates the main culprit for this stock market correction, investors will be hoping the Fed signals it could be done raising rates. Traders expect the Fed to be done raising rates at least for 2023, reported Bloomberg.
Also this week, US nonfarm payrolls and unemployment data for October will be released on Friday, with investors hoping for some slowing in the labour market.
“Stock markets are staging a rebound, while currencies are trading sideways at the moment, with the Fed expected to keep rates on hold and with geopolitical tensions and uncertainty still clouding market direction,” said TreasuryONE currency strategist Andre Cilliers.
At 10.20am, the JSE all share had gained 0.45% to 69,766.92 points and the top 40 0.52%. Industrials had added 0.86%, food producers 0.73%, retailers 0.71%, industrial metals 0.38%, financials 0.38%, banks 0.34% and SA listed property 0.17%.
In Europe, France’s CAC 40 was up 0.53% and Germany’s DAX 0.65%.
Earlier in Asia, the Shanghai Composite index gained 0.12%, while Japan’s Nikkei lost 0.95%. Hong Kong’s Hang Seng was little changed.
Locally, finance minister Enoch Godongwana will be presenting his medium-term budget policy statement address on Wednesday.
“There’s little in the way of good news expected, as spending is very likely to exceed revenue, and government borrowings are likely to increase,” said Cilliers.
“The stronger commodity prices provide some support for the rand in the short term, but we could see some weakness in the run-up to the [medium-term budget],” added Cilliers.
At 10.01am, the rand was little changed at R18.8448/$, while it had strengthened 0.24% to R19.8760/€ and 0.19% to R22.7922/£. The euro was 0.12% weaker at $1.0547.
Gold lost 0.62% to $1,993.51/oz, while platinum gained 0.2% to $906.2/oz. Brent crude was 0.62% weaker at $88.22 a barrel.
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