The JSE and the rand were little changed on Friday morning, as investors awaited the key US inflation report due later in the day.
The all share closed the previous session at a record high of 87,327 points after data from the US on Thursday pointed to sustained momentum in the country’s economy, easing concerns that the US Federal Reserve had acted too slowly in easing monetary policy.
The number of Americans filing for unemployment benefits for the first time, known as initial jobless claims, declined more than expected, signalling a steady labour market.
Another report showed US second-quarter GDP growth held steady at 3%, confirming a strong economic rebound.
Investors are now awaiting the latest reading of the US personal consumption expenditure (PCE) index — the Fed’s preferred measure of inflation.
“Market participants are taking a wait-and-see approach now,” said RMB head of forex execution Matete Thulare.
At 10.35am, the JSE all share and the top 40 were little changed, with the former at 87,299.32 points, with major indices mixed.
At the same time in Europe, the FTSE 100 had gained 0.31%, France’s CAC 40 0.3% and Germany’s DAX 0.41%.
Earlier in Asia, the Shanghai Composite rose 2.88%, Hong Kong’s Hang Seng 3.32% and Japan’s Nikkei 2.32%.
The rand remained steady, having touched an intraday best level of R17.1263 against the dollar.
Thulare said the rand remained resilient as the country reached 100 days of the government of national unity (GNU). “Better electricity production with fewer power cuts, and interest rate cuts not only locally but also from the Fed have all added to the risk-on play in the rand.”
At 10.28am, the rand was little changed at R17.1562/$, while it had firmed 0.43% to R19.1044/€ and 0.38% to R22.9394/£. The euro was 0.35% weaker at $1.1137.
After the moves of this week, we continue to look for consolidation, with R17.15/$-R17.35/$ ranges to persist for now, said Thulare.
In commodity markets, gold lost 0.34% to $2,663.02/oz and platinum 0.16% to $1,007.76/oz. Brent crude was 0.25% firmer at $71.08 a barrel.
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