The JSE was firmer on Friday morning, as local markets closed for a public holiday on Thursday.
The Federal Reserve (Fed) held interest rates unchanged at the conclusion of its two-day federal open market committee (FOMC) meeting on Wednesday evening as expected. However, the central bank policymakers reiterated expectations for three interest rate cuts in 2024.
During the press conference after the decision announcement, Fed chair Jerome Powell said he expected rates to ease as long as the inflation data continued to trend lower. However, he did not elaborate on the timing of the interest cuts
“Global stock markets are cheering the Fed’s economic projections, which restated consensus for three interest rate cuts over the course of the year,” RMB analysts said.
At 10.45am, the JSE all share had gained 1.21% to 73,295 points and the top 40 1.37%. Precious metals had added 3.99%, industrial metals 3.91%, resources 3.81%, industrials 0.71%, SA listed property 0.31%, banks 0.31%, financials 0.29% and food producers 0.15%.
At the same time in Europe, France’s CAC 40 was down 0.24%, while Germany’s DAX had gained 0.11.
Earlier in Asia, the Shanghai Composite lost 0.95% and Hong Kong’s Hang Seng 2.11%, while Japan’s Nikkei gained 0.18%.
The rand gained as much as 1.2% on Wednesday after the Fed indicated three interest rate cuts in 2024, but has since reversed those gains.
“The rand, which closed at 18.70 on Wednesday and touched 18.65 levels at one point Thursday, has weakened to touch R19 levels this morning, in line with all the emerging market currencies as the dollar rallies,” said TreasuryONE currency strategist Andre Cilliers.
“The dollar reversed all of Wednesday’s post-FOMC losses on Thursday after the Swiss National Bank surprised markets by cutting its benchmark rate by 25 basis points, and US economic data surprised to the top side,” said Cilliers. “US manufacturing PMI, existing home sales, and jobless claims numbers all printed better than market estimates.”
At 11.10am, the rand had weakened 0.88% to R18.9848/$, 0.52% to R20.5393/€ and 0.5% to R23.919/£. The euro was 0.39% weaker at $1.0818.
Gold lost 0.49% to $2,169.72/oz and platinum 0.17% to $906/oz. Brent crude was 0.57% to $85.63 a barrel.
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