The JSE was weaker on Wednesday morning, with its global peers mixed as investors remained cautious ahead of the key inflation report due on Thursday.
The personal consumption expenditure (PCE) price index report for January is the main focus this week, with investors hoping to get more clues about the health of the world’s biggest economy and insight into the path of the US Federal Reserve’s monetary policy.
Core PCE, the Fed’s preferred inflation gauge, is expected to rise 2.8% year on year. The report could indicate where the Fed will take interest rates in 2024, reported Bloomberg.
While waiting for key inflation data, investors are keeping an eye on the revised US GDP numbers due later on Wednesday, while more Fed officials are expected to speak later.
“Markets remain cautious ahead of tomorrow’s Core PCE data, while the data calendar is somewhat empty for the remainder of the day, apart from the second reading of US GDP, which should not weigh too much on the current trajectory,” TreasuryOne currency strategist Andre Cilliers said.
At 10.15am, the JSE all share had lost 1.14% and the top 40 was down 1.26%. Precious metals had fallen 2.67%, resources 1.99%, retailers 1.72%, industrial metals 1.27%, banks 1.01%, financials 0.98%, industrials 0.95%, food producers 0.52% and SA listed property 0.31%.
At the same time in Europe, France’s CAC 40 was little changed, while Germany’s DAX was 0.41% firmer.
Earlier in Asia, the Shanghai Composite was down 1.91% and Hong Kong’s Hang Seng 1.41%, while Japan’s Nikkei was little changed.
At 10.18am, the rand had weakened 0.53% to R19.1764/$, 0.27% to R20.7443/€ and 0.26% to R24.2539/£. The euro was 0.25% weaker at $1.0817.
Gold was little changed at $2,028.65/oz, while platinum was 0.7% weaker at $881.77/oz. Brent crude was 0.13% weaker at $82.08 a barrel.
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