The JSE was marginally weaker on Friday, while global markets were mixed as this week’s rally ran out of steam, and investors awaited a fresh catalyst.
Investors are digesting a number of economic reports from the US amid a growing consensus that the Federal Reserve may be done with rate hikes.
The softer-than-expected consumer and producer inflation data released this week — which added to October's soft job market data — further indicates that the US central bank’s aggressive policy tightening is finally working, and the idea that the Fed could even cut rates next year is gaining momentum.
On Thursday, the US labour department reported that weekly jobless claims for the week ended November 11 increased more than expected, indicating the slowing jobs market.
“The jobless claims number reinforced bets that the Fed rate-hiking cycle is over,” TreasuryOne currency strategist Andre Cilliers.
“We can expect a fairly quiet session for today as markets await fresh data,” added Cilliers.
At 10.30am, the JSE all share had lost 0.22% to 73,575.49 points and the top 40 was down 0.19%. Industrial metals had gained 1.03%, resources 0.35% and retailers 0.23%. Precious metals had lost 0.68%, SA listed property 0.58% and industrials 0.58%.
In Europe, France’s CAC 40 was up 0.48% and Germany’s DAX 0.37%.
Earlier in Asia, the Shanghai Composite index gained 0.11% and Japan’s Nikkei 0.48%, while Hong Kong’s Hang Seng lost 2.12% .
At 10.14am, the rand had weakened 0.31% to R18.4211/$, 0.24% to R19.9476/€ and 0.21% to R22.8165/£. The euro was 0.2% weaker at $1.0828.
Gold gained 0.34% to $1,988.21/oz and platinum 0.25% to $898.28/oz. Brent crude was little changed at $77.37 a barrel.
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