The JSE closed higher on Tuesday as global markets reopened after the Easter long weekend. Investors were analysing the US jobs report from the Bureau of Labor Statistics released on Friday, which indicated a resilient economy and moderate inflation after earlier signs of weakening in the labor market. Non-farm payrolls grew by 236,000, slightly below market estimates, and the unemployment rate fell to 3.5%, beating expectations.
Market analysts noted that traders have increased the odds of the Federal Reserve hiking rates at the May Federal Open Market Committee (FOMC) meeting, with contracts pricing in around a 70% chance of a quarter-point increase. The pricing of the first full rate cut has been pushed out to November from September, with expectations of only one cut in the year and another one in January 2024.
The JSE All Share index gained 1.14% to reach 77,990 points, and the Top 40 index added 1.22%. The Resources 10 sector saw an increase of 3.26%, while the Financial 15 and Industrial 25 sectors rose by 0.74% and 0.38% respectively. Global equity markets, including the S&P 500, Dow Jones, and Nasdaq, showed mixed results, with the S&P 500 closing up by 0.01%, Dow Jones up by 0.3%, and Nasdaq down by 0.43%. In Europe, the FTSE 100 gained 0.37%, while the DAX and CAC40 were down by 0.53% and 0.39% respectively. In Asian markets, the Nikkei 225 was up by 1.05% and the Hang Seng by 0.84%.
Investors are keeping an eye on the first batch of first-quarter earnings in light of the prevailing climate of high inflation and rising interest rates, particularly from big banks such as JPMorgan and Wells Fargo, scheduled to report on Friday.
The rand remained steady after the US jobs report, with market analysts suggesting that it may indicate a recovery from earlier underperformance without any apparent reason. The rand traded at R18.35 against the US Dollar, R22.82 against the pound, and R20.05 against the euro.
Market Moves
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