JSE firms as markets make rebound bid

The JSE closed firmer on Thursday, along with its global peers, as markets attempted a rebound.

Investors have been jittery about the possibility of Israel retaliating after Iran’s attack over the weekend, while higher-for-longer interest rate comments this week by Federal Reserve chair Jerome Powell added another layer of caution after stronger-thananticipated US data.

The US initial jobless claims report showed fewer workers applied for unemployment benefits in the week to April 13 than markets had expected, showing the job market remains strong despite high interest rates.

Weekly unemployment claims are considered a proxy for the number of US layoffs in a given week and a sign of where the job market is headed, reported Bloomberg.

Meanwhile, New York Fed president John Williams became the latest Fed official to comment on interest rates, saying he does not see any “urgency” to cut.

Speaking at the Semafor conference in Washington on Thursday, Williams said interest rates would need to come down at some point, adding that for rates to come down, it would be driven by the economy.

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Investors have pushed back their expectations, pricing in the first interest rate reduction in September, with dwindling odds of a second easing this year, reported Bloomberg.

According to data from CME Group, traders are now forecasting just one or two cuts this year, down from expectations for six or more at the start of the year.

“Investors are finding some sense of relief that there has been no further escalation in the Israel-Iran conflict as yet,” TreasuryOne currency strategist Andre Cilliers said. “However, markets remain cautious that US rates will remain higher for longer.”

The JSE all share gained 0.38% to 73,271 points, with major indices mixed, while the top 40 added 0.43%.

At 6pm, the Dow Jones industrial average was 0.48% firmer at 37,934 points and the S&P 500 had gained 0.37%. In Europe, the FTSE 100 was up 0.37%, France’s CAC 40 0.52% and Germany’s DAX 0.38%.

At 6.10pm, the rand had weakened 0.71% to R19.1429/$, having touched an intraday best of R18.92/$. It had weakened 0.64% to R20.4004/€ and 0.39% to R23.7626/£. The euro was 0.10% weaker at $1.0658.

Gold gained 0.73% to $2,384.96/oz and platinum 0.36% to $955.50/oz. Brent crude was 0.37% weaker at $87.57 a barrel.