The JSE was firmer on Thursday morning, with global peers mixed, as investors await key US inflation data due to be released later in the day.
The revised fourth-quarter GDP report showed the US economy grew at a slightly slower pace in the final months of 2023. The US commerce department said GDP growth was revised to 3.2%, while the market had expected it to remain unchanged from the first reading of 3.3%.
Markets are, however, focused on the personal consumption expenditures (PCE) price index report for January, due to be released later on Thursday. Investors are hoping for more clues on 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 what the Fed could do with interest rates in 2024, reported Bloomberg.
According to the CME’s FedWatch tool, markets are pricing in a first Fed cut at the June meeting, though that has been a moving target.
“The interest rate and inflation saga continues. Traders are anxiously awaiting today’s PCE figures as Fed officials continue to push the idea that there is no rush to cut interest rates at this time,” said Citadel Global director Bianca Botes.
At 10.45am, the JSE all share had gained 0.71% to 72,714 points and the top 40 0.78%. Precious metals had added 1.13%, financials 0.87%, resources 0.84%, banks 0.76%, SA listed property 0.66%, industrial metals 0.58% and food producers 0.4%.
At the same time in Europe, France’s CAC 40 had gained 0.2% and Germany’s DAX 0.41%.
Earlier in Asia, the Shanghai Composite gained 1.94%, while Hong Kong’s Hang Seng lost 0.09% and Japan’s Nikkei 0.11%.
At 10.13am, the rand had strengthened 0.23% to R19.2094/$, 0.22% to R20.8196/€ and 0.16% to R24.3139/£. The euro was little changed at $1.0838.
Gold gained 0.17% to $2,037.37/oz and platinum was 1.11% firmer at $885.73/oz. Brent crude was 0.24% weaker at $81.66 a barrel.
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