The JSE closed firmer amid mixed global peers on Wednesday, as investors looked to US economic data and comments from the Federal Reserve’s officials.
Fed chair Jerome Powell was scheduled to speak in a moderated panel at the New York Times’ summit later on Wednesday.
Powell’s comments were expected to provide guidance on the path of future rate cuts and offer clues on the Fed’s plans for 2025. Other Fed officials, including San Francisco Fed president Mary Daly, have stated that an interest rate cut this month is uncertain but remains a possibility.
The Federal open market committee is due to meet on December 17-18, and Daly noted that the central bank was on track for more rate cuts this year, provided data met expectations.
Fed governor Adriana Kugler added that the US economy remained in a “good position” and inflation was on a “sustainable path” towards the central bank’s 2% goal.
Analysts expect the central bank to act cautiously or potentially pause its rate-cutting cycle early next year, as fiscal and trade policy changes are set to take effect.
“The Fed began easing its main interest rate from a two-decade high in September, aiming to provide more support for the job market. Initially, it seemed likely that the Fed would continue cutting interest rates into next year. However, the election of Donald Trump has introduced new uncertainty, as his policies may lead to higher economic growth and inflation,” said Stephen Innes, a partner at SPI Asset Management.
“Trump’s preference for higher tariffs and other policies could have a profound impact on the economy, potentially altering the Fed’s plans,” said Innes.
The JSE all share gained 0.58% to 86,314 points, with major indices mixed, while the top 40 added 0.56%.
At 6.10pm, the Dow Jones industrial average was 0.51% firmer at 44,933 points with markets in Europe mixed.
On the data front, the private payrolls growth was less than expected in November, reflecting a slowing labour market, according to a report from ADP released earlier in the day.
This week’s data is the non-farm payrolls, which will be released on Friday. The report will provide insights into the strength of the US labour market.
At 5.39pm, the rand was little changed at R18.0958/$, while it had weakened 0.17% to R19.0427/€ and 0.22% to R22.9753/£.
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