JSE gains on renewed US Fed cut hopes
The local bourse is on track for its worst weekly drop in almost two months
The JSE was higher on Friday morning, as investors begin to price in the likelihood that the US Federal Reserve may move to further ease monetary policy, while the local bourse is on track for its worst weekly drop in almost two months.
Investors will shift their focus to the US non-farm payrolls to be released later in the day. The data is considered an important indicator of the state of the US economy.
Concerns of an economic slowdown in the world’s largest economy were bolstered this week after manufacturing data dropped to a decade low in September, fuelling expectations that the Fed may cut the interest rate at their two remaining meetings for the year.
Market’s will also monitor Fed chair Jerome Powell’s speech on Friday.
“Powell’s remarks will also be analysed for clues as to policymakers’ bias over the coming months, especially following waning confidence over the health of the world’s largest economy,” market analyst at FXTM Han Tan said.
Earlier, the Hong Kong’s Hang Seng was down 1.07% while Japan’s Nikkei 225 added 0.32%. In Europe, the FTSE 100 added 0.44%, France’s CAC 40 0.22% and Germany’s DAX was flat.
At 10.16am, the JSE was up 0.44% to 53,963 points and the top 40 0.42%. Banks added 1.05% and platinum miners 1.66%.
Pembury jumped 16% to 7c. The company on Friday reported a basic loss per share of 2.14c in the six months to end-June, which is a 46.7% improvement from the previous comparable period.