The JSE opened up positively on Monday after Asian markets moved upwards following announcements from China that it will take steps to support the economy, but fell back in the afternoon to close down by 0.36% on 71,429.88 points.
Traders are preparing for a wave of central bank decisions starting with the US Federal Reserve’s meeting on Tuesday and Wednesday where the pace of tapering of the central bank’s $120 bn a month bond purchase programme will be discussed.
On Friday, the US CPI figures came out in line with expectations, and Tuesday’s producer price inflation data is expected to give further insight on the Fed’s decision on Wednesday.
Interest rate announcements are also expected this week from the ECB, Bank of England, BoJ and a number of other countries’ central banks.
Traders are also keeping a close eye on the rapid spread of the omicron Covid-19 variant after President Cyril Ramaphosa tested positive and UK Prime Minister Boris Johnson’s warning that the country is facing a “tidal wave” of infections from the new strain.
Investors dumped Steinhoff (-6.47%) after the embattled retailer was sued last week for R4.5bn by its BEE partner, Lancaster 101.
South Africa’s biggest supermarket group Shoprite Holdings announced that its upmarket grocery chain Checkers entered into a joint venture agreement with its delivery partner RTT Group, with the aim to grow its e-commerce business. Shoprite shares ended the day 1.71% higher.
Most commodities fell on Monday. Platinum was down 0.85% at 18:00 and palladium down 0.89%, while Brent crude also slipped 0.37%. Gold was the exception, up by 0.37%.
On the forex front, the rand ended the local trading session slightly down after a fairly volatile day. One reason being that markets seem to lack liquidity. The rand tested R16.05 earlier this morning before breaking below R15.90 during the day. At last count the currency was changing hands at R16.03 against the US dollar.
