The JSE was slightly weaker on Tuesday morning, with global peers mixed as investors braced themselves for the release of the US inflation reports.
The producer price index (PPI) reading for April is due to be released in the afternoon, with economists polled by Bloomberg expecting the PPI to have increased 0.3% from the previous month.
The PPI report is important because its components feed directly into the core PCE price index, the Federal Reserve's favourite inflation gauge, reported Bloomberg.
The most anticipated consumer price index (CPI) print for April will be released on Wednesday, with economists expecting an increase of 0.4% from the previous month or an increase of 3.4% year on year.
Investors have been hopeful that the Fed will deliver at least one interest rate cut in 2024. Fed chair Jerome Powell said earlier in May that the central bank’s next move was “unlikely be a rate hike”, despite the previous inflation report coming in hotter than expected.
“The is a bit of caution as traders stayed away from taking any major positions ahead of Wednesday’s highly anticipated US CPI release,” Citadel Global director Bianca Botes said.
“As part of the markets’ monitoring of inflation, the focus today falls on US PPI data.”
At 10.40am, the JSE all share had lost 0.1% to 78,639 points and the top 40 was down 0.17%.
At the same time in Europe, the FTSE 100 and France’s CAC 40 were little changed, while Germany’s DAX had lost 0.21%.
Earlier in Asia, the Shanghai Composite was unchanged, while Hong Kong’s Hang Seng gained lost 0.22% and Japan’s Nikkei gained 0.46%.
At 10.43am, the rand had weakened 0.47% to R18.4385/$, 0.4% to R19.8777/€ and 0.15% to R23.0861/£. The euro was unchanged at $1.0782.
Gold gained 0.12% to $2,340.65/oz and platinum 0.41% to $1,014.80/oz. Brent crude was 0.24% weaker at $83.15 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.