JSE dragged lower by mining shares,
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-fin24
2+$11(6%85* Stock markets rose on Friday, still riding the positive US inflation data from earlier this week as investors mull the si]e of the ne[t interest rate move by the US Federal 5eserve.
The 'ow, S and 3 00 and NasdaT all piled on at least one per cent, adding to the weekly gains for all three indices.
%ut the -ohannesburg Stock ([change’s -S( all share inde[ was down almost a per cent with losses in mining shares, including Sibanye per cent , $nglo per cent and ,mplats . per cent .
Europe
,n (urope, /ondon’s benchmark FTS( 100 inde[ ended the day 0. per cent higher, Frankfurt’s '$; gained 0. per cent and 3aris’s &$& 0 inde[ added 0.1 per cent. “This week has been all about the infla tion data and, frankly, it could be the dominant force in the markets now right up until the -ackson +ole symposium,” said O$N'$ $nalyst &raig (rlam, referring to an upcoming meeting of central bankers from around the world at the end of $ugust. “The fact that inflation not only decelerated in the US, but at a faster pace than the consensus forecasts was a double win and risk assets are feeling the benefit,” (rlam said. %ut whether the improved data heark ens a pivot in Federal 5eserve policy anytime soon remains an open Tuestion. The markets have been concerned that, after two consecutive fed increases in borrowing costs of three Tuarters of a per centage point, further hikes of a similar magnitude could choke off economic recovery. Fed officials have thus far lined up to try to defuse speculation that the cycle of monetary policy tightening could be coming to an end anytime soon. &resset $sset 0anagement’s -ack $blin attributed the gains to a ‘sentiment shift’ that he cautioned may be e[cessive given the limited evidence thus far.
“,t’s Must momentum and positivity that’s driving the market higher,” $blin told $F3. “,t seems like some of the bullish investors may be getting ahead of themselves.”
Resolution
U%S Financial Services $nalyst Terri -acobsen said she e[pected ‘headwinds for the markets until we get some resolution on how far the Fed is going to go and how long they’re going to raise interest rates.’ On the corporate front, five maMor &hinese companies, including two of the country’s largest oil producers, said they would delist from the New The news comes amid rising tensions between %eiMing and :ashington following US +ouse Speaker Nancy 3elosi’s recent visit to Taiwan, which &hina claims as part of its territory. Sino pec and 3etro&hina, two of the world’s biggest, energy firms will apply for ‘voluntary delisting’ of their $merican depositary shares, the compa nies said in separate statements. The $luminum &orporation of &hina, also known as &halco, as well as &hina /ife ,nsur ance and a Shanghai based Sinopec subsidiary, announced similar moves.