The JSE was marginally weaker on Wednesday morning, while the rand was little changed as investors awaited the latest US consumer inflation figures.
The country’s consumer price index (CPI) data, scheduled for release later today, will offer critical insight into its inflation landscape. Economists have forecast that the CPI will increase by 0.2% on a monthly basis, which would translate to a 2.6% 12-month rate. The data will influence the US Federal Reserve’s interest rate decisions.
Several key economic indicators are scheduled for release later this week. The producer price index (PPI) data is scheduled for release on Thursday, while retail sales numbers will be announced on Friday. These releases will provide valuable clarity on the US economy’s performance.
“Investors are watching US CPI data closely, as it will inform expectations for the Fed’s rate path. If inflation readings suggest persistent pressure, the Fed may maintain higher rates for longer, affecting global bond markets and reinforcing the dollar strength,” TreasuryOne currency strategist Andre Cilliers said.
“[Donald] Trump’s policies could introduce inflationary pressures, challenging the US Fed’s efforts to meet its 2% target,” Cilliers said. “This could lead to a cautious approach in easing, keeping treasury yields elevated and influencing global capital flows.”
At 10.40am, the JSE all share had lost 0.44% to 83,832.85 points and the top 40 was down 0.45%. Precious metals had gained 0.66% and resources 0.46%. Financials had lost 0.66%, industrials 0.64%, banks 0.6%, SA listed property 0.58% and retailers 0.37%.
At the same time in Europe, the FTSE 100 and France’s CAC 40 had both gained 0.12%, while Germany’s DAX added 0.13%.
Earlier in Asia, the Shanghai Composite fell 0.51%, while Hong Kong’s Hang Seng was little changed and Japan’s Nikkei lost 1.66%.
At 10.21am, the rand was little changed at R18.0942/$ and R23.0397/£, while it had firmed 0.13% to R19.1827/€. The euro was 0.15% weaker at $1.0603.
In the commodities markets, gold gained 0.41% to $2,608.57/oz and platinum 0.29% to $948.74/oz. Brent crude was 0.63% firmer at $72.04 a barrel.
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