Picture: CHINA NEWS SERVICE/VCG VIA GETTY IMAGES/SHA HANTING
Picture: CHINA NEWS SERVICE/VCG VIA GETTY IMAGES/SHA HANTING

The JSE rose on Wednesday morning as investors shifted their focus to the US Federal Reserve (Fed) amid hopes that the world's largest economy will ease monetary policy. 

The markets continue to bet on whether Fed chair Jerome Powell will signal a dovish tone in his speech at the Jackson Hole seminar on Friday. At least two US Fed rate cuts have been partially priced in by the markets. The Fed will also publish minutes from its most recent meeting later in the day. 

“Investors will be looking for acknowledgement that downside risks have increased,” head of research at London Capital Group Jasper Lawler said. “However, importantly, the FOMC meeting was prior to the most recent escalation in US–Sino trade dispute and prior to the bond market flashing strong recession warning signals. With this is mind, the minutes could be slightly more hawkish relative to current market pricing.” 

Earlier, the Shanghai Composite was flat while Hong Kong's Hang Seng  gained 0.15% and Japan's Nikkei 225 fell 0.28%.  

At 10.40am, the JSE all share was up 0.42% to 54,507.40 points and the top 40 0.44%. Banks gained 1.89% and financials 1.27%. 

Advtech climbed 2.81% to R11.33 after the company said its headline earnings per share grew 25%-35% in the six months to end-June. 

Sasol fell 0.17% to R271.14 after it said on Wednesday that it did not share any new price-sensitive information with certain investors.

Consumer price inflation fell to 4%  year on year in July from 4.5% in June and below expectations of 4.3%, according to a Bloomberg consensus. 

mjoo@businesslive.co.za