The JSE was lightly weaker on Wednesday morning, along with its global peers, as markets considered the possibility of delayed interest rate cuts by the Federal Reserve.
Meanwhile, investors continued watching the US corporate season, with Tuesday marking the halfway point of the fourth-quarter earnings period.
A strong earnings season, coupled with expectations for an interest-rate cut by the US Federal Reserve, has been a source of strength in markets. But doubts have crept in after Fed chair Jerome Powell signalled last week that investors may have to wait longer than expected for a central bank pivot.
Powell’s comments in an interview led traders to believe that there may be fewer cuts in 2024 than some had hoped, putting pressure on the markets, reported Bloomberg.
“Markets continue to re-price rate-cut expectations. The market’s focus now shifts to inflation data, expected next Tuesday, which will see the market recalibrate its interest-rate projections in line with that data release,” said Citadel Global director Bianca Botes.
At 10.30am, the JSE all share lost 0.12% to 74,466.53 points, while the top 40 was little changed. Banks had lost 0.85%, financials 0.73%, industrial metals 0.62%, SA listed property 0.6%, resources 0.5%, food producers 0.5% and precious metals 0.32%.
At the same time in Europe, France’s CAC 40 was little changed, while Germany’s DAX was down 0.23%.
Earlier in Asia, the Shanghai Composite gained 1.44%, while Hong Kong’s Hang Seng lost 0.4% and Japan’s Nikkei 0.11%.
At 10.42am, the rand had weakened 0.22% to R18.8513/$, 0.15% to R20.2733/€ and 0.47% to R23.7881/£. The euro was little changed at $1.0763.
Gold lost 0.12% to $2,033.21/oz and platinum 0.92% to $895.5/oz. Brent crude was 0.2% firmer at $78.88 a barrel.
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