MARKET WRAP: JSE boosted by rate cut and US-China deal

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The local bourse benefited from a surprise interest-rate cut, while progress in the US-China trade war supported global stocks

The JSE had its sixth consecutive session of gains on Friday,

“The pre-emptive strike by the Reserve Bank is deemed sufficient by forex markets that are arguably more forgiving under a much improved risk climate,” said Harvey. “That may not last, however, as global cutting cycles begin to slow and a period of rate stagnation lingers in developed economies.” Global markets have been boosted this week by the US and China signing the first phase of a trade deal on Wednesday, which analysts said reduces the chances of further friction between the world’s two largest economies.

“Chinese overnight data offered some cause for optimism, with industrial production, retail sales and fixed-asset investment all comfortably beating market expectations”, said Oanda senior market analyst Craig Erlam.

 

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