The JSE was slightly firmer by mid morning on Monday , with global markets mixed ahead of a holiday-shortened trading week.
Trading activity is expected to be subdued throughout the week. The JSE will close early on Tuesday and will be closed on Wednesday and Thursday for Christmas Day and the Day of Goodwill respectively.
Despite the condensed trading schedule, several key economic indicators are scheduled for release in the US. These include the Consumer Confidence Index on Monday, which will be closely watched, particularly in light of the Federal Reserve’s decision on December 18 to revise its interest rate cut outlook.
Additionally, initial jobless claims data, scheduled for release on Thursday, will be scrutinised, especially given the recent uptick in unemployment, a trend that Fed officials have been tracking.
At 10.55am, the JSE had gained 0.2% to 84,771 points, with major indices mixed, while the top 40 had added 0.28%.
At the same time in Europe, the FTSE 100 had lost 0.11% and France’s CAC 40 0.14%, while Germany’s DAX was little changed.
Earlier in Asia, the Shanghai Composite lost 0.5%, while Hong Kong’s Hang Seng gained 0.79% and Japan’s Nikkei 1.19%.
The rand reversed the previous session’s gains, reaching an intraday worst of R18.3934 against the dollar.
At 10.28am, the rand had weakened 0.41% to R18.3838/$ and 0.32% to R23.0948/£, while it was little changed at R19.14/€. The euro was 0.13% weaker at $1.0411.
Andre Cilliers, currency strategist at TreasuryONE, said low holiday liquidity may worsen volatility, with resistance at R18.4350/$ and support at R18.10/$ providing key trading markers.
“Short-term risks include political instability linked to the government of national unity tensions, such as disagreements over the Bela Act, which could undermine recent rand gains,” said Cilliers.
In the commodities markets, gold gained 0.27% to $2,629.53/oz and platinum 1.87% to $940.48/oz. Brent crude was 0.47% firmer at $73.30 a barrel.
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