The JSE was marginally firmer on Tuesday morning, with global markets mixed as investors awaited the US Federal Reserve’s policy meeting while keeping a watchful eye on the geopolitical tension in the Middle East.
The Federal open committee meeting (FOMC) will conclude its two-day policy meeting on Wednesday; Fed chair Jerome Powell is expected to deliver the policy statement after.
The Fed is expected to keep interest rates unchanged, but investors will be looking for clues on whether the central bank will deliver its first cut at its September meeting.
According to the CME FedWatch Tool, traders have priced in a 100% chance for a September rate reduction.
Investors are watching geopolitical tension in the Middle East after reports that Israel is gearing up to launch a major attack on Lebanon after a deadly rocket strike in the Israeli-occupied Golan Heights. Market watchers were concerned that that could trigger an all-out war with Hezbollah, reported Al Jazeera.
“The escalating tensions between Israel and Hezbollah, along with some caution ahead of tomorrow’s FOMC meeting, are keeping the market gains in check,” said TreasuryOne currency strategist Andre Cilliers.
At 11.05am, the JSE all share had gained 0.33% to 81,275 points and the top 40 0.34%. Banks had added 1.06%, financials 0.94%, precious metals 0.84%, retailers 0.59% and industrials 0.33%. Industrial metals had lost 2.66% and resources 0.42%.
At the same time in Europe, the FTSE 100 was down 0.44%, while France’s CAC 40 had added 0.31% and Germany’s DAX 0.33%.
Earlier in Asia, the Shanghai Composite lost 0.43% and Hong Kong’s Hang Seng 1.43%, while Japan’s Nikkei gained 0.15%
The rand was attempting to regain some ground after falling as much as 1.5% to R18.52/$ in intraday trading in the previous session.
At 11.17am, the rand had strengthened 0.53% to R18.3294/$, 0.44% to R19.8534/€ and 0.48% to R23.5692/£. The euro was 0.1% firmer at $1.0832.
In the commodities market, gold gained 0.23% to $2,388.87/oz and platinum 0.68% to $951.90/oz. Brent crude was 0.29% weaker at $78.86 a barrel.
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