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Picture: WALDO SWIEGERS/BLOOMBERG
Picture: WALDO SWIEGERS/BLOOMBERG

The JSE was weaker on Monday morning, with global markets mixed as investors looked ahead to the last US Federal Reserve meeting for 2023 this week.

The Federal Open Market Committee (FOMC) will conclude its two-day meeting on Wednesday, where market participants expect the central bank policymakers to maintain interest rates within the 5.25%-5.5% range, where they have been since July.

Investors are also looking for any signals on when central bankers will begin to cut interest rates. According to the CME Group’s FedWatch tool, markets are pricing in a 45% likelihood that the Fed will lower rates by 25 basis points in March.

Meanwhile, data on Friday showed the world’s biggest economy added more jobs than expected in November, while the unemployment rate eased. 

November’s number got a boost from tens of thousands of vehicle workers and actors returning to work from strikes, but the upside surprise shows there’s still strength in the US labour market, reported Bloomberg. 

“Friday’s stronger-than-expected US labour market data saw the dollar strengthen and markets lower their expectation of early rate cuts by the Fed,” said Citadel Global director Bianca Botes. “The markets now turn their focus to the Fed’s final interest rate decision on Wednesday.”

At 10.30am, the JSE all share had lost 0.75% to 73,240.85 points and the top 40 was down 0.69%. Banks had added 0.3% and financials 0.23%. Industrial metals had lost 4.09%, resources 2.84%, precious metals 1.2%, retailers 1.41%, SA listed property 0.63% and food producers 0.59%. 

In Europe, France’s CAC 40 had gained 0.11%, while Germany’s DAX was little changed. 

Earlier in Asia, the Shanghai Composite index was up 0.74% and Japan’s Nikkei 1.5%, while Hong Kong’s Hang Seng was down 0.87%.

At 10.40am, the rand had weakened 0.63% to R19.0747/$, 0.61% to R20.5272/€ and 0.81% to R23.9466/£. The euro was little changed at $1.0761.

Gold lost 0.46% to $1,995.36/oz, while platinum gained 0.44% to $921.10/oz. Brent crude was 0.21% firmer at $76 a barrel.

tsobol@businesslive.co.za

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