The JSE was weaker on Wednesday at midday, with global peers mixed as investors evaluated the US presidential debate between Republican nominee Donald Trump and Democratic nominee Kamala Harris.
Investors were closely watching the debate to gain insight into the candidates’ economic policies, which can affect global trade, investment and growth. An instant poll done by CNN showed that Harris was the perceived winner of the debate.
“Last night’s US presidential debate ruffled a few feathers and has created even more uncertainty around the US election; one that is expected to be highly contested,” Citadel Global director Bianca Botes said.
At 11.35am, the JSE all share had lost 0.67% to 81,092.58 points and the top 40 was down 0.69%. Industrial metals had added 0.61%, resources 0.25% and precious metals 0.19%. Banks had lost 1.99%, financials 1.55%, retailers 1.41%, industrials 0.43% and SA listed property 0.34%.
At the same time in Europe, the FTSE 100 was down 0.12%, while Germany’s DAX had gained 0.13% and France’s CAC 40 0.15%.
Earlier in Asia, the Shanghai Composite lost 0.82%, Hong Kong’s Hang Seng 0.77% and Japan’s Nikkei 1.49%.
Investors were also looking ahead to the release of the August consumer inflation report later in the day. Market participants eagerly awaited the August consumer price index (CPI) report, a key economic indicator, scheduled for release on Wednesday morning.
According to economists polled by Bloomberg, the consensus forecast suggests a 0.2% increase in the headline US CPI from the previous month and a 2.6% rise from the same period in 2023. The CPI report, along with the producer price index (PPI) due on Thursday, may influence the size of an interest-rate cut by the Federal Reserve at its two-day meeting concluding on September 18.
Based on Fed funds futures trading, the CME’s FedWatch Tool indicates a 69% probability of a 25 basis points (bps) rate reduction and a 31% likelihood of a 50 bps cut.
“Meanwhile, investors will also have to digest the US CPI data, which is due out later in the day. This reading will be factored into any rate-cut expectations,” said Botes.
At 11.41am, the rand had weakened 0.36% to R17.8789/$ and 0.21% to R23.4032/£, while it was little changed at R19.7505/€. The euro was 0.25% firmer at $1.1046.
In the commodities markets, gold gained 0.31% to $2,523.67/oz, while platinum was little changed at $937.70/oz. Brent crude was 1.62% firmer at $70.78 a barrel.
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