The JSE ended in the red on Thursday, following the Asian exchanges, but opposite the European, which closed in the green. The All Share Index was down by 0.21% and ended at 64,392.43 points.
Both European and U.S. stocks recovered from large early-session drops as Wall Street looked to shake off inflation data, which showed that consumer prices climbed more than expected. The U.S. Bureau of Labor announced that prices rose 8.2% over the prior year and 0.4% over the prior month.
According to Yahoo Finance, analysts expect that the figures will result in another 75-basis-point rate hike from the Federal Reserve when it meets in November, quoting Michael Pearce, senior economist at Capital Economics.
“The stronger than expected 0.4% rise in consumer prices in September, driven yet again by a stronger increase in core prices, nails on a 75bp rate hike at the November meeting and, in contrast to the Fed minutes released yesterday, suggests that the Fed may need to continue raising rates at that pace in December and perhaps beyond too.”
The rand continued to fall and settled at R18.23$.Meanwhile, while oil prices rose on Thursday, following yesterday’s drop.
