The JSE was firmer midmorning on Thursday, while its global peers were mixed as investors digested minutes from the Federal Reserve’s (Fed) latest policy meeting.
Minutes of the federal open market committee (FOMC) meeting in December showed interest rate cuts to be likely in 2024, but provided little clarity on when that might happen.
On the data front, the December private payrolls report is due later on Thursday, while the key nonfarm payrolls (NFP) report is set to be released on Friday.
“Markets are shrugging off hawkish Fed FOMC minutes. The minutes showed that the Fed still expects rates to remain high and that there would only be three rate cuts this year. On the other hand, markets are still pricing in five to six rate cuts in 2024,” said TreasuryONE currency strategist André Cilliers.
“Traders will now look at today’s jobless claims number and, more importantly, tomorrow’s nonfarm payrolls and unemployment numbers for further signs of a cooling US labour market,” added Cilliers.
At 11.45am, the JSE all share had gained 0.46% to 74,851.41 points and the top 40 0.55%. Industrial metals had added 0.9%, resources 0.84%, banks 0.67%, financials 0.45%, precious metals 0.41% and industrials 0.33%. Retailers had lost 0.55% and food producers 0.37%.
At the same time in Europe, London’s FTSE 100 was little changed, while France’s CAC 40 had gained 0.21% and Germany’s DAX 0.21%.
Earlier in Asia, Shanghai’s lost 0.43%, Hong Kong’s Hang Seng 0.1% and Japan’s Nikkei 0.53%.
At 11.57am, the rand had strengthened 0.34% to R18.6222/$, while it weakened 0.03% to R20.4098/€ and 0.14% to R23.6927/£. The euro was 0.43% firmer at $1.0966.
Gold gained 0.29% to $2,047.34/oz, while platinum lost 0.23% to $971.3/oz. Brent crude was 0.73% firmer at $78.91 a barrel.
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