The JSE was firmer on Thursday morning along with global peers, as investors digested data that showed the US economy remained resilient, and looked ahead to the US Federal Reserve’s preferred inflation data reading due later.
US GDP for the third quarter grew at a stronger-than-expected pace, accelerating at a 5.2% annualised pace.
The data comes as investors bet that the Fed could be done with raising rates in its attempt to fight inflation and could even start cutting rates early in 2024.
Dovish comments by Fed officials this week also raised hopes that the central bank may indeed not need to raise interest rates further.
“Wednesday’s third-quarter GDP number saw little reaction on the markets, with focus on the dovish speak from the Fed and the hope of earlier monetary policy easing,” TreasuryONE currency strategist Andre Cilliers said.
“Today’s core PCE price index number, the Fed’s preferred inflation indicator, and the jobless claims number will be closely watched by markets,” he said.
At 10.30am, the JSE all share had gained 0.59% to 75,682.79 points and the top 40 was up 0.7%. Precious metals had added 1.49%, industrials 1.01%, resources 0.66%, industrial metals 0.3% and banks 0.16%.
In Europe, France’s CAC 40 was up 0.21% and Germany’s DAX 0.22%.
Earlier in Asia, the Shanghai Composite index added 0.26%, Hong Kong’s Hang Seng 0.18% and Japan’s Nikkei 0.5%.
At 10.21am, the rand had strengthened 0.1% to R18.7207/$ and 0.28% to R20.4933/€, while it was little changed at R23.7863/£. The euro was 0.13% weaker at $1.0954.
Gold was little changed at $2,042.66/oz, while platinum lost 0.13% to $931.75/oz. Brent crude was 0.77% firmer at $83.25 a barrel.
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