The JSE opened weaker on Thursday in risk-off trade following the US Federal Reserve’s decision to raise interest rates by 25 basis points to a range of 1.75%-2%.Banks and retailers were up after the rand recovered to R13.19 to the dollar at the opening, after weakening to R13.44 on Wednesday.The Fed’s decision was expected. Initially the market took a hawkish view on the Fed’s forward guidance, with the probable number of further hikes this year increasing to a further two from one, which would bring the total rate increases for the year to four instead of the priced-in three.However, mixed signals from Fed chairman Jerome Powell at the news conference led the market to believe the Fed was less hawkish than initially thought. Attention then shifted to the European Central Bank’s (ECB’s) meeting later on Thursday.Speculation is rife that ECB president Mario Draghi will announce the unwinding of the bank’s asset-buying programme later in the year, causing the euro to firm against the...
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