JSE faces positive Asian markets on Wednesday ahead of Fed minutes
Positive earnings reports from US retail giants helped support sentiment in Wall Street overnight, but attention is on the future of monetary policy
The JSE looks set to start a positive session for Asian markets on Wednesday morning, with all eyes on the US Federal Reserve minutes later in the day.
The minutes, due after the JSE closes, will be closely scrutinised as investors mull the path of interest rates in the world’s largest economy. Recent economic data has helped soothe concerns that a series of hefty hikes are on their way, but policymakers have made clear they still need to tame inflation, and that future moves will be data dependent.
US markets registered modest gains overnight, buoyed by earnings reports from retailers, notably Walmart, which is the world’s second largest.
“Investors embraced Walmart earnings figures, which exceeded the market’s diminished profit expectations and modestly improved full-year forecast,” said National Australia Bank (NAB) currency strategist Rodrigo Catril in a note.
Walmart had indicated it was benefiting from shifting consumer spending patterns, and was managing to attract more high-income customers. US retail sales numbers for July are also due later, expected to show muted growth after June’s 1% year-on-year rise.
In morning trade, Japan’s Nikkei had gained 0.91% and the Hang Seng 0.81%, while the Shanghai Composite had gained 0.28%.
Tencent, important to the JSE due to the shareholding of Naspers, had fallen 0.2%.
Gold was flat at $1,775.99/oz, while platinum was little changed at $932.30. Brent crude had gained 0.25% to $92.78 a barrel.
The rand was 0.2% weaker at R16.40/$.
Retail sales numbers for June are due later, with economists expecting growth of 0.4%, up from 0.1% in May.
The corporate calendar is bare in terms of earnings reports on Wednesday.