The JSE added more than 1% on Friday, while the rand extended gains as positive sentiment from this week’s encouraging US economic data carried through to the end of the week.
This week’s upbeat momentum was fueled by consecutive reports indicating a moderation in US inflation.Core consumer inflation rose less than expected year on year, while the producer price index also saw a smaller-than-anticipated increase in December.
The improved inflation data has sparked hopes that the US Federal Reserve may implement further interest rate cuts later this year.
Additionally, strong earnings reports from major banks boosted stocks this week, helping to shake off the December slump that persisted into early 2025, reported Bloomberg.
The JSE all share gained 1.25% to 84,700 points and the top 40 was 1.3% firmer.
At 5.45pm, the Dow Jones industrial average was 0.8% firmer at 43,496 points, while markets in Europe firmed more than 1%.
Investors are now turning their attention to Donald Trump’s inauguration as US president for the second time, with a focus on expected policy shifts under his administration.
“Markets are awaiting clarity on Trump’s economic strategies post-inauguration,” said TreasuryONE currency strategist Andre Cilliers. “This uncertainty has impacted currency markets, with the rand benefiting from a weaker dollar as US treasury yields declined.”
At 5.50pm, the rand had firmed 0.42% to R18.70/$, 0.37% to R19.26/€ and 0.6% to R22.81/£. The euro was little changed at $1.03.
“Still, investors remain wary of Trump’s economic stance,” said Cilliers. “His policies and US treasury movements are expected to dominate market sentiment in the short term.”
Gold gained 1.36% to $2,714.83/oz and platinum 2.12% to $964.85. Brent crude was 0.8% weaker at $80.64 a barrel.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.