MARKET WRAP: JSE falls to lowest in a month as markets anticipate aggressive Fed
If the US Fed raises the funds rate by more than a half a percent on Thursday, there could be further weakness in global equity markets and a softer rand
The JSE touched its weakest level in a month, tracking global markets lower as investors anticipate the US Federal Reserve will need to act more aggressively after Friday’s worse-than-expected inflation report.
The local bourse extended Friday’s losses, falling more than 2% as sentiment remained preoccupied by last week’s news that the US May consumer price index came in at its highest level since 1981. The report showed prices rose 8.6% year on year, while core inflation, which excludes food and energy prices, came in at 6%. The market expectation was an increase of 8.3% overall and 5.9% for core inflation...
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