The JSE was weaker on Monday morning, with global peers mixed as investors looked ahead to the latest reading of the Federal Reserve’s preferred inflation gauge this week as well as several corporate earnings reports.
The outlook for US consumer inflation and the timing of interest rate cuts remain in focus, with investors waiting for the release of the latest monthly personal consumption expenditures (PCE) price index report on Thursday; the index is considered a gauge for consumer inflation.
“Markets started the new week on a cautious note as the timing of rate cuts by the Fed gets pushed out further,” said TreasuryONE currency strategist Andre Cilliers. “Markets will be looking at the US PCE inflation number on Thursday, along with durable goods orders and new home sales data, for clues as to when the Fed could start cutting rates.”
At 10am, the JSE all share had lost 1% to 73,474. 72 points and the top 40 1.04%. Industrial metals lost 2.62%, resources 1.75%, banks 1.37%, financials 1.26%, retailers 1.15%, industrials 0.52% and SA listed property 0.19%.
At the same time in Europe, France’s CAC 40 had lost 0.23%, while Germany’s DAX was little changed.
Earlier in Asia, the Shanghai Composite was down 0.93% and Hong Kong’s Hang Seng 0.61%, while Japan’s Nikkei gained 0.35%.
Bloomberg reported that investors were also keeping an eye on corporate earnings, with several high-performing companies reporting this week, which would give investors greater insight into the state of tech and consumers.
At 10.17am, the rand was little changed at R19.3259/$, while it had weakened 0.14% to R20.9297/€ and 0.17% to R24.4877/£. The euro was 0.11% firmer at $1.083.
Gold was little changed at $2,035.45/oz, while platinum lost 0.2% to $897/oz. Brent crude was 0.21% firmer at $81.13 a barrel.
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