The JSE closed a little weaker on Wednesday, with the all share index down 0.33% as major commodity prices slipped after strong recent runs.
At 6pm, platinum was down 1.09% to $1,019.14/oz, palladium 1.67% to $1.060.31 and silver 3.51% to $33.61. Gold fell 1.04% to $2,718.10/oz after reaching another record high on Tuesday.
Oil fell 0.98% to $74.50 a barrel.
Citadel Global director Bianca Botes said: “Oil prices have fallen due to increased US crude inventories, while the Biden administration has renewed efforts for a ceasefire in the Middle East.”
In currency markets, the dollar strengthened across the board as traders now expected a slower pace of interest rate cuts by the US Federal Reserve, Botes said. “According to CME Fedwatch, markets are pricing in an 85.9% chance of a 25 basis point rate cut in November, with a 14.1% chance that rates will stay unchanged.”
Against a rampant greenback, the rand fell 1.7% to R17.8038. At 7.20pm it had weakened 1.45% to R19.1823/€ and 1.24% to R23.0127/£.
“Meanwhile, US 10-year treasury yields continue climbing to their highest levels since July, and Japan’s 40-year bond yields hit a 16-year high amid a global bond sell-off,” Botes said. Bond yields move inversely to their price.
The biggest losers on the JSE were resources, down 1.56%, and precious metals, which fell 1.91%. Harmony Gold, African Rainbow Minerals, Anglo American Platinum and Pan African Resources were among the 10 worst performers on the day.
Earlier data from Stats SA showed consumer inflation in September slowed for a fourth month, with the consumer price index dropping to 3.8% from 4.4%.
With inflation now well below the midpoint of the SA Reserve Bank’s target of 3%-6%, consumers can almost certainly look forward to another rate cut when the monetary policy committee announces its latest decision on November 21.
The Bank cut the repo rate by 25 basis points (bps) to 8% in August after hikes beginning in November 2021 amounted to 475 bps, from a record low of 3.5%.
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