MARKET WRAP: JSE slips amid focus on key US data

The JSE closed weaker on Monday, in line with its global peers, as investors awaited fresh data this week. 

Inflation and the outlook on interest rates have remained the dominant theme for markets for some time, with investors trying to get a grip on when the Fed could start cutting interest rates.

On the data front this week, investors will look out for the US ADP Employment Survey and January job openings due to be released on Wednesday, as well as the key monthly nonpayroll data due on Friday. The data will provide further insight into the labour market and the strength of the world’s biggest economy.

Investors will also hear from Federal Reserve chair Jerome Powell when he delivers the monetary policy updates to the House of Representatives on Wednesday and to the Senate on Thursday. Investors will look for any clues on the future direction of interest rates.

“With much of the same thing, investors are awaiting further data for fresh clues on the timing of potential interest rate cuts by the Fed,” Citadel Global director Bianca Botes said.

The JSE all share lost 0.2% to 72,633 points and the top 40 0.24%. Precious metals rose 3.08%, retailers 1.15% and resources 0.98%. Banks lost 1.13%, financials 0.88%, industrial metals 0.87%, food producers 0.83%, SA listed property 0.71% and industrials 0.23%. 

At 6.10pm, the Dow Jones industrial average was 0.28% weaker at 38,978 points, while the S&P 500 was little changed. In Europe, the FTSE 100 lost 0.62% and Germany’s DAX 0.13%, while France’s CAC 40 gained 0.17%.

Shares in diversified industry group Bidvest rose 7.85% to R253.14 — the most since March 2023 — after the company reported a 5% rise in headline earnings for the first half, with five of its seven divisions reporting double-digit trading profit growth.

The group, which is seen as one of the proxies of the SA economy, given its extensive footprint across services, freight, consumer and commercial products, financial services and automotive sectors, reported a 4.2% increase in after-tax profit to R3.46bn. 

The rand kept steady on the day, reaching an intraday best of R18.99/$. At 18.22pm, the rand had strengthened 0.45% to R19.0115/$ and 0.4% to R20.6332/€, while it was little changed at R24.1393/£. The euro was 0.22% firmer at $1.0861.

Gold gained 1.36% to $2,111.07/oz and platinum 1.51% to $898.64/oz. Brent crude was little changed at $83.25 a barrel.

tsobol@businesslive.co.za