The JSE was firmer on Friday morning, tracking firmer global markets as another soft US jobs report supported investors’ hopes for an interest rate cut.
Data from the US labour department on Thursday showed more Americans than expected filed for unemployment benefits last week. The number is the largest print for weekly jobless claims since August 2023.
The data was one of the first notable cracks in the otherwise resilient job market, raising the expectation that the US Federal Reserve might cut interest rates in 2024, reported Bloomberg.
“Weaker-than-anticipated US weekly jobless claims numbers came just after last week’s weaker [nonfarm] payrolls data, supporting traders’ optimism for rate cuts by the Fed,” said TreasuryONE currency strategist Andre Cilliers.
At 10.39am, the JSE all share had gained 0.88% to 78,218 points and the top 40 0.88%.
At the same time in Europe, the FTSE 100 added 0.52%, France’s CAC 40 0.85% and Germany’s DAX 0.62%.
Earlier in Asia, the Shanghai Composite was little changed, while Hong Kong’s Hang Seng gained 1.2.3% and Japan’s Nikkei 0.41%.
The rand extended the previous session’s gains, firming alongside emerging market currencies due to “the softer dollar and rate cut optimism”, said Cilliers.
“We expect the recent R18.40/R18.70 trading range for the rand to remain intact for now.”
At 10.50am, the rand had strengthened 0.28% to R18.4139, 0.23% to R19.8567/€ and 0.17% to R23.0912/£. The euro was little changed at $1.0781.
Gold rose 1.03% to $2,371.08/oz and platinum 0.82% to $998.59/oz. Brent crude was 0.19% firmer at $84.04 a barrel.
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