JSE could move lower in line with edgy world markets
The JSE could be weaker on Wednesday, taking its lead from the world markets that are on edge amid concern over rising inflation in the US.
Japan’s Nikkei 225 and Australia’s ASX 200 were down nearly 2% each, setting the scene for could be a downbeat session on the JSE.
However, the rand remained relatively resilient against the dollar, shedding just 0.10% to R14.01/$ before the release of local inflation data later this morning. The local currency, which is the proxy of sentiment towards emerging markets that are deemed risky, tends to move in line with global risks perceptions.
Consumer inflation probably accelerated to an annual rate of 4.3% in April, according to a Bloomberg median estimate, from 3.2% in March.
Should the print match expectations, this will be the fastest rise in the annualised consumer price index since Covid-19 struck SA just more than a year ago, but will not necessarily mean that the Reserve Bank could increase interest rates soon.
The numbers will still be below the midpoint of the Bank’s 3%-6% target range.
Stats SA will also release its retail figures for March. Retail sales are expected to have risen to an annual rate of 2.5% in March, according to the Bloomberg median forecast, from 2.3% in February.
Source: businesslive.co.za
