MARKET WRAP: JSE and rand firm on Powell testimony and Kganyago news

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US Fed chair Jerome Powell says trade-war uncertainties and global growth concerns are weighing on the US economic outlook

The JSE closed higher on Wednesday as US markets cheered Federal Reserve chair Jerome Powell’s indication that the US will likely loosen monetary policy soon.

Investors have already priced in a 100% chance of a rate cut at the Fed’s next meeting in July, despite positive US jobs data reducing the expectation of a cut of 50 basis points. Powell said the Fed would consider a broad range of factors, including upcoming labour, retail and quarterly GDP figures ahead of announcing its decision at the end of the month.

The benchmark R186 government bond was weaker, with its yield rising three basis points to 8.12%. Bond prices move inversely to bond yields. Earlier, in Asia, the Shanghai Composite fell 0.44% and Japan’s Nikkei 225 0.15% while Hong Kong’s Hang Seng gained 0.31%.

 

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