JSE slips as US Federal Reserve remains in the spotlight

The JSE was lower on Thursday morning as markets digested meeting minutes from the US Federal Reserve, which dampened expectations of a US monetary policy easing cycle. 

”Members generally agreed that it was important to maintain optionality in setting the future target range for the federal funds rate and, more generally, that near-term adjustments of the stance of monetary policy would appropriately remain dependent on the implications of incoming information for the economic outlook,” the Fed said. 

Minutes from the Fed’s recent meeting showed that its members were divided on cutting the interest rate 25 basis points or keeping it unchanged at their meeting in July. Focus will remain on the Fed ahead of Fed chair Jerome Powell’s speech at the Jackson Hole seminar on Friday. 

Earlier, the Shanghai Composite was up 0.11% while Hong Kong’s Hang Seng was down 0.82% and Japan’s Nikkei 225 was flat. 

At 10.15am, the JSE all share slipped 0.85% to 54,175.50 points and the top 40 was down 0.92%. Industrials were down 1.01% and banks 1.17%. 

Italtile jumped 10.4% to R13.80 after the tile manufacturer said its trading profit increased 18% to R1.7bn in the year to end-June. 

Mr Price slumped 12% to R153.66 after the retailer said on Thursday that its total retail sales grew 0.5% in the first four months of its new financial year. 

Exxaro gained 0.24% to R134.78 after the company said its headline earnings per share grew 42% to 1,730c in the six months to end-June.

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