The JSE was weaker on Wednesday, while global markets were mixed as investors assessed Federal Reserve chair Jerome Powell’s comments.
During his testimony before the Senate Banking Committee on Tuesday, Powell reaffirmed that inflation had significantly decreased in the past two years. However, it remained above the central bank’s desired 2% target. Powell also cautioned that delayed or inadequate interest rate cuts posed a risk, that could weaken the economy and affect job markets.
Powell is set to appear before the House Financial Services Committee later on Wednesday.
According to data from CME Group, traders are still betting that there is a 70% chance that the central bank will cut rates as soon as September.
Investors are now looking to the release of June’s US consumer inflation data on Thursday, which will be crucial to the federal open market committee (FOMC) policy decision at its July 30-31 meeting.
“Markets continue to tread water as Powell remains cautious on rate cuts,” said TreasuryONE currency strategist Andre Cilliers.
“Thursday’s key US consumer inflation numbers will be closely watched, with markets expecting core inflation to remain somewhat sticky at 3.4%,” said Cilliers.
The JSE all share lost 0.22% to 80,445 points and the top 40 0.14%.
At 6.20pm, the Dow Jones industrial average had gained 0.46% to 39,472 points and the S&P 500 0.62%. In Europe, the FTSE 100 added 0.66%, France’s CAC 40 0.86% and Germany’s DAX 0.94%.
Shares in platinum and chrome miner Tharisa fell the most in two weeks on the day despite the company reporting increased production for the third quarter as mining and plant recoveries improved.
The company also said the focus on sustainable mining and the structural improvements achieved this year to date “position us for a strong last quarter, with further improvements in the mining performance, providing the sustainable foundation for the medium- to long-term plans for the mine”.
The company share price closed 2.4% weaker at R2.40.
The rand held steady on the day, reaching an intraday best of R18.0472/$, with analysts saying a narrow range of R18.05/$- R18.25/$ can be expected to hold for now.
At 6.30pm, the rand was little changed at R18.1286/$ and R19.6154/€, while it had strengthened 0.41% to R23.1206/£. The euro was 0.12% firmer at $1.0828.
In the commodities market, gold gained 0.56% to $2,378.20/oz and platinum 0.47% to $995.80/oz. Brent crude was 0.61% firmer at $85.16 a barrel.
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