The JSE was firmer on Friday morning, with global markets mostly up as investors digested US economic data and comments by the US Federal Reserve.
The Atlanta Fed president, Raphael Bostic, said on Thursday night that there was no urgency to cut interest rates with the labour market and economy still showing signs of strength. He cautioned that it was not yet clear when inflation would move back to the 2.0% target level.
Data on Thursday showed US retail sales for January plunged 0.8%, more than the forecast 0.3% decline. The data raised concern about the strength of the US consumer under the weight of sticky inflation and high interest rates, Bloomberg reported.
“The rollercoaster ride of US economic news continues, with data this week putting a damper on any hopes for a smooth ride to reaching target inflation of 2% and has most likely kicked any Fed interest-rate cuts further down the road,” Citadel director Bianca Botes said.
“The likelihood of a rate cut in March now hangs by a thread, while any hopes for a May cut are dwindling fast,” said Botes.
“In the meantime, both consumers and investors will have to navigate these uncertain waters, keeping a close eye on inflation trends, economic indicators and the Fed’s policy stance.”
At 10.15am, the JSE all share had gained 0.72% to 73,742.18 points and the top 40 was up 0.81%. Industrial metals had risen 2.11%, resources 1%, banks 0.81%, retailers 0.77%, financials 0.71% and industrials 0.65%. SA listed property had lost 0.42% and precious metals 0.17%.
At the same time in Europe, France’s CAC 40 gained 0.63% and Germany’s DAX 0.5%.
Earlier in Asia, the Shanghai Composite was up 1.28%, Hong Kong’s Hang Seng 2.45% and Japan’s Nikkei 0.86%.
At 10.09am, the rand had strengthened 0.11% to R18.9193/$ and 0.14% to R20.361/€, while it was little changed at R23.8042/£. The euro was little changed at $1.0762.
Gold was unchanged, trading at $2,004.86/oz, while platinum gained 0.31% to $898.27/oz. Brent crude was 0.11% weaker at $82.68 a barrel.
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