Picture: MICHAEL ETTERSHANK
Picture: MICHAEL ETTERSHANK

The JSE pushed higher in broad-based gains on Wednesday morning, boosted by improved global sentiment after the US Federal Reserve signalled interest-rate cuts were on the way.

Fed chair Jerome Powell said on Tuesday night that the world's most influential bank was ready to support the US economy, amid concern that economic activity was slowing.

“Powell gave the markets what they wanted to hear, and the result was a spectacular rally, as traders increased their bets of a rate cut happening before the year-end,” London Capital Group head of research Jasper Lawler said.

The Dow jumped 2% on Tuesday, its best performance in four months, while the tech-heavy Nasdaq added 2.7%.

On Wednesday at 10am, the all share was up 1.12% to 57,134.9 points and the top 40 1.2%. Gold miners were up 3.95%, platinums 2.81% and industrials 1.02%.

Local news was less positive, with the IHS Markit purchasing managers' index (PMI) for May falling to 49.3 index points. The release follows a disappointing Absa manufacturing PMI on Monday, and news on Tuesday that SA's economy contracted 3.2% in the first three months of 2019 compared to the previous three months.

Rand hedge Richemont jumped 3.59% to R116.79, extending Tuesday's 5.57% surge.

Gold Fields jumped 4.6% to R74.75 and AngloGold Ashanti 3.93%.

Shoprite slumped 3.51% to R161.13, extending a 3.83% fall on Tuesday.

Astral Foods lost 3.72% to R158.87.

Gold was up 0.61% to $1333,43/oz and platinum 0.9% to $827.47. Brent crude was 0.23% higher at $61.50 a barrel.

Focus on Wednesday remains on the US-China trade war, with US treasury secretary Steven Mnuchin confirming on Tuesday that US President Donald Trump and Chinese President Xi Jinping will meet later in June.

Locally, the SA Chamber of Commerce and Industry's business confidence index for May is due at 11.30am.

gernetzkyk@businesslive.co.za