MARKET WRAP: JSE higher as US Fed may tone down hawkish rhetoric
Dow opens flat as market prices in a probable interest-rate hike of 25 basis points by the US Federal Reserve, with gradual increases likely to continue
The JSE closed higher on Wednesday as banks and financials gained on a turnaround in the rand.The local currency firmed to R13.2190 to the dollar from over-sold levels, after weakening to R13.3962 in intra-day trade. This followed gains made by the euro against the dollar, as an expected 25 basis-point rate hike by the US Fed is already priced into the market.The market took the view that a more hawkish stance from the Fed as part of its future guidance had become less likely, as the Fed would tend to avoid unnecessary risks on the recent slightly higher-than-expected inflation data."We do not believe current inflation trends are likely to cause the Fed to move faster or alter its stance of gradual policy normalisation," Barclays Research analysts said.Local data on the day disappointed, with just a small gain in retail sales reducing the likelihood of rate increases from the South African Reserve Bank. Annual growth in retail sales amounted to 0.5% in April, much lower than the mar...
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