MARKET WRAP: JSE firmer as markets await key US inflation data this week

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US April CPI will help guide the Fed in its interest rate decision at the next FOMC meeting in mid-June

The JSE closed firmer on Monday amid mixed global peers as investors continue to watch the banking sector, whileUS regional bank stocks extended Friday’s rebound as recent data showed continued stability in the deposit base of smaller banks, according to Bloomberg.

Investor attention this week turns to US April consumer price index data on Wednesday which will help guide the Federal Reserve in its interest rate decision at the next federal open market committee meeting in mid-June. Last week, the Fed hiked rates by 25 basis points. “Any surprises to the downside for the inflation report will see bond yields start to head lower once again, given how tetchy the market is and how traders are looking for any reason to go against the Fed’s stance of no rate cuts coming any time soon.”urther evidence of inflation slowing down could reinforce expectations around the Federal Reserve pausing and eventually cutting interest rates,” said FXTM senior research analyst Lukman Otunuga.

The JSE all share gained 0.56% to 78,572 points and the top 40 added 0.62%. The precious metals and mining index added 1.99%, resources advanced 1.82% and industrial metals garnered 1.49%.

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