The JSE was firmer on Thursday, with global peers mixed as investors digested comments by US Federal Reserve chair Jerome Powell.
The Fed left the policy rate unchanged at 5.25%-5.5% on Wednesday, as expected. In its policy statement, the Fed acknowledged that there had recently been a lack of further progress toward the 2% inflation target.
Powell didn’t explicitly signal a rate cut was coming in 2024 year and said it will probably take longer for central bankers to gain enough confidence in the downward trajectory of inflation. However, investors found comfort after Powell signal that that he didn't see oncoming rate hikes despite inflationary pressures, reported Bloomberg.
“The Fed remains cautious about inflation, holding interest rates steady as inflation has not yet consistently fallen to its 2.0% target. Fed chair Jerome Powell minimised the likelihood of an upcoming rate hike, indicating that the current federal funds rate would be maintained,” TreasuryOne currency strategist Andre Cilliers said.
Attention is now shifting to Thursday’s jobless claims and the upcoming payroll and unemployment figures on Friday.
At 10.30am, the JSE all share had gained 0.78%, with major indices mixed, while the top 40 had added 0.75%.
At the same time, the FTSE 100 had gained 0.38% and France’s CAC 40 had lost 0.81%, while Germany’s DAX was little changed.
At 11am, the rand was little changed at R18.6035/$ and R23.2827/£, while it had weakened 0.1% to R19.9081/€. The euro was unchanged at $1.0707.
Gold lost 0.83% to $2,304.35/oz and platinum 0.48% to $961.60/oz. Brent crude was 0.94% firmer at $84.23 a barrel.
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