The JSE was firmer in morning trade on Monday in renewed risk-on trade, as the market took the view that it was unlikely the US Federal Reserve would follow a more hawkish policy. The all share crossed 58,000 points for the first time in three weeks as miners and industrials combined with banks and retailers on a stronger rand to boost the overall market. The release of nonfarm payroll data in the US on Friday did not convince the market that the Fed would raise rates more aggressively. Although the number of US jobs created in June came in higher than expected, hourly earnings growth disappointed, remaining 2.7%. The market had expected 2.8%. The Fed watches the tempo of wage growth, which will cause higher inflation, before it is likely to embark on a higher interest-rate policy. The market has priced in a further two rate hikes in the US in 2018, following the two already implemented by the Fed, with interest rates now at 2%. "It is clear market participants were paying most atte...
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