JSE faces subdued Asian markets on Thursday as markets pause for breath

The JSE faces subdued Asian markets on Thursday morning, with global stocks pausing after recovering from a sell-off last week.

Commentary from US Federal Reserve officials this week has helped placate concerns after the world’s most influential bank brought forward its interest-rate timeline last week.

This buoyed the dollar and put the JSE and other markets under pressure, but Fed chair Jerome Powell has reiterated that inflation fears should be temporary this week, also offering upbeat commentary about the outlook for the US labour market.

It was quiet overnight with no real news or top-tier data to drive activity, said National Australia Bank analyst Tapas Strickland in a note.

Global attention is expected to remain on the US, with jobless claims data due on Thursday, while personal consumption expenditures numbers for May, which is the Fed’s preferred measure of inflation, are due on Friday.

The Bank of England is also due to to make its latest interest rate decision later, and its commentary on inflation will be scrutinised.

In morning trade on Thursday, Japan’s Nikkei and the Hang Seng were flat, while the Shanghai Composite had dipped 0.15%.

Tencent, which gives direction to the JSE via the Naspers stable, was also little changed.

Gold was 0.3% weaker at $1,773.32/oz while platinum had fallen 1.24% to $1,074.99. Brent crude was 0.23% weaker at $75.22 a barrel.

The rand was 0.13% weaker at R14.22/$.

There is little on the local corporate calendar on Thursday, while on the economics front producer inflation data for May is due. It is expected to have accelerated due to rising fuel and food costs.

gernetzkyk@businesslive.co.za