The JSE rebounded on Tuesday morning, recovering from a nearly 2% loss, as global markets traded mixed ahead of key US inflation data releases.
Investors are bracing themselves for the US producer price index (PPI) report, due later today, which measures wholesale inflation. The December consumer price index (CPI) will follow on Wednesday.
According to Bloomberg polls, economists predict a 0.4% increase in headline PPI and a 0.3% rise in core PPI, excluding food and energy. Those inflation reports will be crucial in guiding the US Federal Reserve’s next interest rate decision.
The CME FedWatch Tool indicates an 80% chance that the Fed will maintain interest rates at its upcoming meeting.
“Investors are [mainly] awaiting tomorrow’s US [consumer] inflation data, which will help to gauge the Fed’s next moves on interest rates following the central bank’s recent hawkish stance,” Citadel Global director Bianca Botes said.
At 10.15am, the JSE all share had gained 0.65% to 82,598 points and the top 40 was up 0.83%.
At the same time in Europe, the FTSE 100 was little changed, while France’s CAC 40 had gained 1.12% and Germany’s DAX 0.72%.
Earlier in Asia, the Shanghai Composite rose 2.54% and Hong Kong’s Hang Seng 0.72%, while Japan’s Nikkei lost 1.83%.
At 10.29am, the rand had firmed 0.16% to R18.95/$, while it was little changed at R19.45/€ and R23.20/£. The euro was 0.16% firmer at $1.02.
Gold was unchanged at $2,673.63/oz, while platinum added 1.15% to $972.95/oz. Brent crude was 0.62% firmer at $80.51 a barrel.
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