South African futures track softer JSE, while US equity markets retreat
Futures closed lower on Wednesday, in line with a softer JSE and subdued global markets. US equities retreated from record highs as the market awaited the Federal Reserve’s interest-rate decision at 8pm South African time. Although the market is not expecting an interest-rate increase from the Fed, the speech will be closely watched for signals of future monetary policy. Oanda analyst Craig Erlam said there was now an element of doubt around the path of US inflation, not to mention Fed chairperson Janet Yellen’s position when her current term ends early next year. It was possible the Fed may be vague on the subject of interest rates beyond the end of the year and may, instead, focus on the job of balance-sheet reduction, he said. Locally the Reserve Bank is widely expected to announce a second interest-rate cut for the year on Thursday, a prospect bolstered by slightly better-than-expected inflation data for July released on Wednesday. Two weeks ago it was almost a dead certainty th...
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