The JSE was firmer on Tuesday morning, with global markets mixed as investors looked ahead to the US Federal Reserve’s monetary policy meeting and the local medium-term budget policy statement (MTBPS) on Wednesday.
The Fed will conclude its federal open market committee meeting on Wednesday where the central bank is widely expected to hold its benchmark interest rate.
Analysts say the central bank could maintain its hawkish stance following several hotter-than-expected inflation readings and a strong labour market.
US nonfarm payrolls and unemployment data for October, due on Friday, will also be watched with investors hoping for some slowing in the labour market. US employers added 336,000 jobs in September.
At 10.20am, the JSE all share had gained 0.21% to 70,018.65 points and the top 40 was up 0.11%. Retailers had added 1.75%, SA listed property 0.74%, banks 0.52%, financials 0.48%, industrials 0.43% and food producers 0.36%. Precious metals had lost 0.78%, resources 0.39% and industrial metals 0.2%.
In Europe, France’s CAC 40 was up 0.36% and Germany’s DAX 0.3%.
Earlier in Asia, the Shanghai Composite index was little changed, while Hong Kong’s Hang Seng lost 1.71% and Japan’s Nikkei gained 0.53%.
Locally, finance minister Enoch Godongwana will present his medium-term budget policy statement (MTBPS) on Wednesday.
“Tomorrow’s medium-term policy statement is likely to put further pressure on the rand given the expected larger budget deficit and likely higher government borrowing requirement, and we could see a move back above R19/$,” TreasuryONE currency strategist Andre Cilliers said.
At 10.28am, the rand had strengthened 0.28% to R18.8011/$ and 0.16% to R22.8714/£, while it was little changed at R19.9875/€. The euro was 0.16% firmer at $1.0631.
Gold was little changed at $1,996.95/oz, while platinum gained 1.17% to $938.3/oz. Brent crude gained 0.29% to $86.80 a barrel.
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