The FTSE/JSE All Share Index gained 0.44% to 73 608 points on Tuesday led by industrials, listed property, and retailers. Local focus is on the South African Reserve Bank’s Monetary Policy Committee (MPC) meeting this week. Governor Lesetja Kganyago is expected to announce the latest interest rate decision later today. Economists anticipate that interest rates will remain unchanged, while the market will be looking for hints as to when interest rate reductions might occur. At 18h00, the rand had weakened 0.60% to R18.99/$, 0.58% to R20.57/€ and 0.55% to R23.99/£.
With conflicting economic data and anticipation of the Personal Consumption Expenditures (PCE) price index report which could provide insights into the Federal Reserve's future rate cuts, US stocks ended lower on Tuesday. The S&P 500 and the Dow Jones lost about 0.30% and 0.10%, respectively, extending their losses for the third consecutive session, while the Nasdaq fell 0.40%.
Conversely, European markets closed higher on Tuesday, with the STOXX 50 rising by 0.60% and the STOXX 600 by 0.20%, driven mainly by retail stocks, while investors continued to digest last week's key central bank policy decisions.
Asian equity markets traded in mixed fashion as the recent rally, fuelled by interest rate cut forecasts and enthusiasm over artificial intelligence took a breather. Investors will also keep a close watch on Chinese manufacturing and services activity data this week to see how the second-biggest economy in the world is faring. The Shanghai Composite rose 0.17% to close at 3 031 points while the Shenzhen Component climbed 0.28% to 9 449 on Tuesday, with mainland stocks breaking a three-day decline.
With predictions of a tighter supply due to Russian production cuts and attacks on Russian refineries, oil prices rose by more than a dollar on Tuesday, setting them up for gains for a second consecutive day. Brent crude was 0.24% weaker at $85.92 a barrel at the close of local business. Gold gained 0.19% to $2 175.24/oz and platinum 0.40% to $905.6/oz.
