The JSE was firmer on Tuesday morning, with global peers mixed as investors took in that the US Federal Reserve might not cut interest rates as much as markets had hoped.
Meanwhile, Chinese markets rallied after a government investment fund said it would step up stock purchases. China's Central Huijin Investment, a sovereign fund that owns the country’s state-run banks and other big government-controlled enterprises, promised to expand its purchases of stock index funds, to help markets that have been sagging under heavy selling pressure from a property crisis and slowing economy.
The fund periodically steps up buying of shares in big state-owned banks and other companies to counter heavy selling pressure in the Chinese markets, reported Bloomberg.
With the calendar slightly bare on Tuesday, investors will look towards several Fed officials scheduled to give comments, including Cleveland Fed president Loretta Mester and Boston Fed president Susan Collins.
“US data releases have indicated growth in the economy’s services sector, which has further underscored the higher-rates-for-longer stance by the Fed,” said Citadel Global director Bianca Botes.
“Chinese authorities stepped in to stem losses in the country’s stock market, after it hit a five-year low last week. This move forms part of the government’s intervention to assist the fragile Chinese economy, which assisted gains in the global markets.”
At 10.15am, the JSE all share had gained 0.88% to 74,683.79 points and the top 40 was up 1.03%. Industrial metals had added 1.35%, industrials 1.23%, resources 1.05%, banks 0.6%, precious metals 0.51%, financials 0.47%, retailers 021% and food producers 0.19%.
At the same time in Europe, France’s CAC 40 had gained 0.56% and Germany’s DAX 0.31%.
Earlier in Asia, the Shanghai Composite rose 3.23% and Hong Kong’s Hang Seng 4.02%, while Japan’s Nikkei lost 0.53%.
At 10.26am, the rand had strengthened 0.57% to R18.9634/$, 0.4% to R20.3990/€ and 0.24% to R23.8180/£. The euro was 0.14% firmer at $1.0757.
Gold was little changed at $2,026.19/oz, while platinum gained 0.52% to $902.3/oz. Brent crude was 0.62% firmer at $78.32 a barrel.
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