Weaker rand agrees with Trump’s gut feel on Fed
Arrowhead Properties and agricultural group Crookes Brothers release results, and the BER the third quarter’s consumer confidence index
The JSE is likely to join a global rebound on Wednesday sparked by a White House adviser’s comment ahead of Saturday’s Group of 20 (G20) meeting in Argentina.
The S&P 500 reversed losses to close 0.33% higher on Tuesday after US President Donald Trump’s economic adviser, Larry Kudlow, said Saturday’s meeting was an opportunity to turn the page on the trade war with China.
Tencent was up 2.63% to HK$311.80, indicating that 31%-owner Naspers will lead the JSE higher on Wednesday.
BHP tracked oil prices lower, falling 1.2% to A$30.50 in Sydney ahead of the JSE’s opening.
The rand appeared to agree with Trump’s unhappiness with Federal Reserve chair Jerome Powell, weakening in the early hours of Wednesday to trade at R13.94/$, R15.74/€ and R17.76/£ at 6.45am.
“They’re making a mistake because I have a gut, and my gut tells me more sometimes than anybody else’s brain can ever tell me,” Trump told the Washington Post in response to the Federal Reserve raising interest rates.
An indication of how good this year’s Christmas shopping will be for retailers will be provided on Wednesday by the Bureau for Economic Research’s (BER) quarterly consumer confidence index.
In contrast to the business confidence index that the bureau released on Tuesday, which covered the current quarter, Wednesday’s consumer confidence index covers the third quarter.
The economists’ consensus according to Trading Economics is that SA’s consumer confidence index will have fallen to about 17 points from the second quarter's 22 points.
“Modest economic growth prospects, coupled with significant fuel price increases and high unemployment are some of the factors likely to have affected consumer sentiment,” Investec Bank economist Kamilla Kaplan said in her weekly note e-mailed on Friday.
Fruit and sugar producer Crookes Brothers said on November 20 that it expected to report on Wednesday that basic earnings per share for the six months to end-September grew about 38%.
“The earnings increase is attributable mainly to a significant increase in sugar cane yields as well as overall sugar production stemming from our extensive replanting programme following the drought of the previous year,” the trading statement said.
Arrowhead Properties rebounded 14% to R3.99 on Tuesday ahead of the expected release of its results on Wednesday. It has not issued a trading update.