JSE all share opens lower as improved consumer inflation data is reported
The JSE was weaker in morning trade on Wednesday after April’s consumer inflation data came in much better than expected. The consumer price index (CPI) dropped to 5.3% in April from 6.1% in the previous month, and an expected 5.6%. The rand strengthened to R12.9884/$ in response from R13.0754. "The latest inflation figure supports our view that the Reserve Bank will cut its key policy rate later this year," said Capital Economics analyst John Ashbourne. The Bank is expected to keep rates unchanged on Thursday at the conclusion of its meeting this week. Banks and financials were up on the stronger rand with food and drug retailers also gaining. Miners were lower on weaker platinum and gold prices while rand hedges reacted negatively to the firmer local currency. Reports that the ANC’s National Executive Council (NEC) was set to discuss the removal of President Jacob Zuma at a meeting this weekend initially drove the rand more than 1% stronger. The Dow Jones closed 0.21% lower on Tue...
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