MARKET WRAP: JSE closes flat as euro retreats on ECB stance
The European Central Bank kept rates unchanged with the euro hammered for its cautious outlook on further interest rate hikes
The JSE closed flat on Thursday in volatile trade as the market sought direction on the future path of global monetary policy.Platinum and gold stocks gained on higher metal prices, while Brent crude fell 0.6% to $76 a barrel.The European Central Bank (ECB) earlier kept rates unchanged as expected, but the euro weakened significantly on the day after the bank expressed a cautious view on when interest rates will eventually rise. It cited summer 2019 as most likely, disappointing hawks in the market who expected it to happen sooner.The US Federal Reserve increased interest rates on Wednesday, also as expected. After an initial subdued reaction from the dollar, it recorded strong gains later in the day, firming 1.26% on the euro, which fell to $1.1646, from $1.7973, after the JSE’s close.After earlier gaining nearly 2% against the dollar, the rand ended Thursday flat at R13.3019.Naspers ended the day 1.71% lower at R3,335, despite issuing a trading update on Wednesday reflecting stron...
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