The JSE was weaker on Friday morning, while its global peers were mixed as investors digested the latest figures from the US Federal Reserve’s preferred measure of inflation, which came in within expectations.
Price increases as measured by the US Personal Consumption Expenditures (PCE) price index slowed to 2.4% year on year in January, down from 2.6% the previous month, the US Bureau of Economic Analysis (BEA) reported on Thursday.
On a monthly basis, the PCE index rose 0.3%, as forecast. The core PCE index, which excludes volatile food and energy prices, rose 2.8% on a yearly basis, matching the estimates of economists surveyed by Bloomberg.
Inflation and the outlook on interest rates have been the dominant theme for markets for some time, with investors trying to get a grip on when the Fed could start cutting interest rates.
“Market bets on an early rate cut in the US were a touch higher after Thursday's PCE deflator number came out on market estimates,” said TreasuryOne currency strategist Andre Cilliers. “However, Fed officials have made it clear the intent to use a cautious approach to interest rate cuts.”
At 10.35am, the JSE all share had lost 0.39% to 72,444.11 points and the top 40 was down 0.45%. Banks had gained 0.21% and financials 0.1%. Precious metals had lost 1.49%, resources 0.64%, SA listed property 0.62%, industrials 0.6%, food producers 0.59% and retailers 0.28%.
At the same time in Europe, France’s CAC 40 was little changed and Germany’s DAX had added 0.42%.
Earlier in Asia, the Shanghai Composite gained 0.39%, Hong Kong’s Hang Seng 0.48% and Japan’s Nikkei 1.9%.
At 11.14am, the rand was little changed at R19.2062/$, while it had weakened 0.15% to R20.7637/€ and 0.25% to R24.2577/£. The euro was little changed at $1.0812.
Gold lost 0.11% to $2,041.71/oz and platinum 0.47% to $870.90/oz. Brent crude was 0.85% firmer at $82.64 a barrel.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.