The JSE was firmer on Friday morning, while global markets were mixed, as investors digested US economics data and looked ahead to fresh catalysts.
Markets have rallied over the past two sessions on the hope that a favourable December consumer and producer inflation reports could prompt the Federal Reserve to implement further interest rate cuts this year.
However, retail data released on Thursday painted a mixed picture. While US retailers reported sales growth in December, the increase was not as robust as economists had expected. Core retail sales fell short of expectations.
“The softer-than-expected core inflation led to a decline in US treasury yields, sparking speculation about potential Fed rate cuts in 2025,” said TreasuryOne currency strategist Andre Cilliers.
At 10.40am, the JSE all share had gained 0.69% to 84,274 points and the top 40 0.75% firmer.
At the same time in Europe, the FTSE 100 was up 0.96%, France’s CAC 40 0.81% and Germany’s DAX 0.59%.
Earlier in Asia, the Shanghai Composite added 0.18% and Hong Kong’s Hang Seng 0.31%, while Japan’s Nikkei lost 0.31%.
“Meanwhile, markets are awaiting clarity on Trump’s economic strategies post-inauguration, with cautious trading expected ahead of the weekend,” said Cilliers. “This uncertainty has impacted currency markets, with the rand benefiting from a weaker dollar as US treasury yields declined.”
At 10.50am, the rand had firmed 0.43% to R18.70/$, 0.35% to R19.27/€ and 0.59% to R22.81/£. The euro was little changed at $1.02.
“Still, investors remain wary of Trump’s economic stance, resulting in limited directional momentum,” said Cilliers. “Trump’s policies and US treasury movements are expected to dominate market sentiment in the short term, with limited market activity anticipated until after his inauguration.”
Gold gained 1.23% to $2,710.54/oz and platinum 0.52% to $949.70/oz. Brent crude was 0.64% firmer at $81.81 a barrel.
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