MARKET WRAP: JSE closes flat as retail sales data disappoints
A 2.3% year-on-year retail sales contraction against the market’s forecast of 1.2% marks the largest monthly contraction since the 2008-09 recession
The JSE closed flat on Wednesday following disappointing retail sales data that dragged down retail stocks. A 2.3% year-on-year retail sales contraction against the market’s forecast of 1.2% was reported, following a 1% increase in December. The US Federal Reserve’s interest-rate announcement was to come later in the evening, but was not expected to be a big market mover as it has already been priced in. The market is also waiting for results of the Dutch election‚ which may confirm further gains among populist parties in Europe. At the JSE’s close, the platinum price was flat at $937.33 an ounce, while gold was up 0.15% to $1‚200.54 an ounce. The dollar was weaker against the euro in late afternoon trade‚ indicating the market was not expecting an overly hawkish stance by the Fed on further increases this year. Market focus was on retail stocks following the release of retail sales data indicating sales fell by a monthly 1.2% in January‚ after declining by a monthly 2.5% in Decembe...
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