Global stock markets were mixed on Monday as investors gear up for the next round of interest rate hikes from the US Federal Reserve and the SA Reserve Bank with both meeting this week.
The JSE closed 0.16% lower with the All Share Index at 66,475 points.
Investors fear a further interest rate hike could drag down the global economy with commentators bracing for a 75 bps hike from the Fed while a poll of 18 economists conducted by finder.com split economists down the middle over whether the SARB would hike by 50 or 75 bps.
The Fed will announce its decision on Wednesday while the SARB will make its decision on Thursday. The Bank of England and the Bank of Japan are also set to announce a fresh round of hikes on Thursday with markets split over whether the BOE will hike by 50 or 75 bps, reports TreasuryONE.
In Asia, the Nikkei and Hang Seng both closed over 1% down while the Shanghai stock exchange joined its peers, closing in the red.
Wall Street opened lower with the Dow dropping 0.6% but it ticked up into the green at the time of writing.
In the currency markets, the rand was under strong pressure again from the US dollar today with the R18.00/$ level looking ominous. However, the local unit has clawed back some of the greenback’s forward march and is currently trading at R17.68/$.
