The JSE was firmer on Wednesday morning, with its peers mixed as investors awaited US consumer inflation numbers.
Data released on Tuesday showed the producer price index (PPI) rose 0.5% in April, above the market expectation of 0.3%. However, concern about inflation was partially mitigated by a revised 0.1% decline in March.
The PPI report is important as its components feed directly into the core personal consumption expenditure (PCE) price index, the US Federal Reserve’s favourite inflation gauge.
Investors will now focus on Wednesday’s consumer price index (CPI), which will give investors fresh insights into the Fed’s future monetary direction. Markets expect an increase of 0.4% from the previous month, or an increase of 3.4% year on year.
Sticky inflation has remained a concern for market participants in recent weeks, sparking fears that the Fed will delay interest rate cuts.
“Today’s all-important US CPI data may create some volatility this afternoon as it provides fresh directional momentum to traders,” said Citadel Global director Bianca Botes. “A hotter-than-expected reading is likely to put the the JSE and rand under pressure.”
At 10.05a, the JSE all share had gained 0.68% to 79,168 points and the top 40 rose 0.63%.
At the same time in Europe, the FTSE 100 had added 0.48% and Germany’s DAX 0.24%, while France’s CAC 40 was little changed.
Earlier in Asia, the Shanghai Composite lost 0.82% and Hong Kong’s Hang Seng 0.22%, while Japan’s Nikkei was little changed.
At 10.43am, the rand had strengthened 0.24% to R18.3540/$, while it was unchanged at R19.8878/€ and R23.1372/£. The euro was 0.14% firmer at $1.0831.
Gold gained 0.36% to $2,364.71/oz and platinum 0.56% to $1,059.70/oz. Brent crude was 0.42% firmer at $82.73 a barrel.
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