The precious metals and mining index has surged in the past five sessions, tracking a recovery in platinum group metal prices
13 October 2021 - 08:01
byAndries Mahlangu
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
The JSE could edge lower on Wednesday, taking a breather after the all share index gained a hefty 2.24% over the past five days, boosted mainly by a rebound in mining shares.
The precious metals and mining index, which is made up platinum shares and gold miners, has surged nearly 17% in the past five sessions, tracking a recovery in platinum group metal (PGM) prices in particular.
Iron prices have also staged a comeback, boosting big diversified miners such as Anglo American.
Elsewhere, Brent crude was steady at $83.32 a barrel, not far off a three-year peak of $84.20 touched on Tuesday.
The rising energy prices and their potential implications on global inflation and interest rates remain the key themes on the markets. With the acceleration in oil prices, speculation is rife that central banks could embark on a tightening cycle to fend off inflation. In this regard, the release of US inflation figures for September in the afternoon will be closely watched.
The US consumer inflation is likely to have risen at the annual pace of 5.3% in September, according to Bloomberg median estimate. The August inflation figures were the same at 5.3% year on year.
The rand was relatively flat in early trade at R14.95/$, while other commodity prices such gold and palladium were little changed on the day.
Equities in Asia were patchy, with Japan’s Nikkei 225 losing 0.19% while Hong Kong’s Hang Seng was shut because of a Typhoon Kompasu.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
JSE likely to take breather after strong run
The precious metals and mining index has surged in the past five sessions, tracking a recovery in platinum group metal prices
The JSE could edge lower on Wednesday, taking a breather after the all share index gained a hefty 2.24% over the past five days, boosted mainly by a rebound in mining shares.
The precious metals and mining index, which is made up platinum shares and gold miners, has surged nearly 17% in the past five sessions, tracking a recovery in platinum group metal (PGM) prices in particular.
Iron prices have also staged a comeback, boosting big diversified miners such as Anglo American.
Elsewhere, Brent crude was steady at $83.32 a barrel, not far off a three-year peak of $84.20 touched on Tuesday.
The rising energy prices and their potential implications on global inflation and interest rates remain the key themes on the markets. With the acceleration in oil prices, speculation is rife that central banks could embark on a tightening cycle to fend off inflation. In this regard, the release of US inflation figures for September in the afternoon will be closely watched.
The US consumer inflation is likely to have risen at the annual pace of 5.3% in September, according to Bloomberg median estimate. The August inflation figures were the same at 5.3% year on year.
The rand was relatively flat in early trade at R14.95/$, while other commodity prices such gold and palladium were little changed on the day.
Equities in Asia were patchy, with Japan’s Nikkei 225 losing 0.19% while Hong Kong’s Hang Seng was shut because of a Typhoon Kompasu.
mahlangua@businesslive.co.za
Gold treads water amid expectations Fed will stick to tapering plans
Softer dollar keeps gold steady
Inflation worries put Asian shares on edge
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
Brent nears $85 a barrel as energy crunch boosts demand
Global stock sell-off continues amid soaring energy prices
Global markets inch up on China gains as Treasury yields lift dollar
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.