The JSE was firmer on Friday mid-morning, with global markets mixed as investors awaited key US jobs data, to be released later in the afternoon.
The nonfarm payroll (NFP) report will offer insight into the accuracy of Federal Reserve chair Jerome Powell’s upbeat assessment of the US economy.
Speaking in a moderated panel at a New York Times’ summit this week, Powell said that the US economy was strong enough to allow policymakers to proceed cautiously on rate cuts. However, he stopped short of challenging market expectations of a December rate cut.
He noted that the labour market was improving, with lower downside risks, and growth was stronger than expected though inflation was slightly higher.
According to a Bloomberg survey of economists, the US economy is expected to have added 214,000 jobs in November. This NFP labour report is likely to play a big role in informing the Fed’s rate decision at its upcoming policy meeting.
At 11.10am, the JSE all share had gained 0.18% to 87,006.53 points, with major indices mixed, while the top 40 added 0.26%.
At the same time in Europe, the FTSE 100 had lost 0.16%, while France’s CAC 40 had gained 1.01% and Germany’s DAX 0.17%.
Earlier in Asia, the Shanghai Composite gained 1.05% and Hong Kong’s Hang Seng 1.57%, while Japan’s Nikkei lost 0.77%.
TreasuryOne currency strategist Andre Cilliers said the rand remained steady despite challenges, with a range of R17.89/$-R18.1800/$ expected for the day.
“Traders await non-farm payroll data today for direction. A soft reading could weigh on the dollar and support the rand,” said Cilliers
At 11.13am, the rand was little changed at R18.0185/$ and R19.0617/€, while it had weakened 0.13% to R22.9924/£. The euro was little changed at $1.0578.
In the commodities markets, gold gained 0.41% to $2,642.4/oz, while platinum lost 0.17% to $935.6/oz. Brent crude was 0.61% weaker at $71.71 a barrel.
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