The JSE was marginally firmer on Tuesday morning, with global markets mixed with a focus on the Federal Reserve policy meeting outcome on Wednesday.
Investors are waiting for updates from the federal open market committee’s (fomc) two-day policy meeting, beginning on Tuesday, where it is widely expected to keep interest rates unchanged.
The Fed funds futures market has priced in an approximately 97% probability that the central bank will leave rates unchanged during its Wednesday announcement, according to the CME FedWatch tool.
“Focus now turns to the Fed on Wednesday for their interest rate decision post their FOMC meeting. Investors will be looking for fresh clues as to the Fed’s interest rate trajectory,” said RMB head of forex execution Matete Thulare. “For now though interest rates are expected to remain on hold.”
At 10.05am, the JSE all share and the top 40 were little changed, with the former at 74,379.08 points. Precious metals had gained 1.91%, resources 1.42%, industrial metals 1.22%, food producers 0.49% and SA listed property 0.29%. Industrials had lost 0.7%, banks 0.55%, financials 0.27% and retailers 0.18%.
At the same time in Europe, France’s CAC 40 was little changed, while Germany’s DAX was 0.12% weaker.
Earlier in Asia, Shanghai’s composite lost 1.83% and Hong Kong’s Hang Seng 2.4%, while Japan’s Nikkei gained 0.11%.
Meanwhile, investors are also waiting for two of the mega-cap technology names, Microsoft and Alphabet, to report earnings this week. These companies, which are part of a group known as the “Magnificent 7”, have been closely watched by market participants after driving up the S&P 500 with their outsized gains, reported Bloomberg.
At 9.16am, the rand had weakened 0.2% to R18.8174/$, with the currency remaining trapped in very tight ranges with many participants sitting on the sidelines ahead of the FOMC, said Thulare. It was little changed at R20.3473/€ and R23.8683/£. The euro was 0.18% weaker at $1.0813.
Gold gained 0.31% to $2,037.88/oz and platinum 0.17% to $928.10/oz. Brent crude was 0.13% weaker at $81.79 a barrel.
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