The FTSE/JSE All Share Index ended Wednesday on a weaker note, following mixed performances from global markets as investors evaluated the US Federal Reserve's (Fed) preferred inflation measure. The PCE data remains a key focus for insights into potential Fed actions on interest rates during its December meeting. Additionally, market participants analysed the minutes from the Fed’s recent policy meeting, which signalled that rate cuts are anticipated but will proceed gradually. These decisions depend on inflation steadily declining toward the 2% target and the US economy maintaining near-full employment.
US stocks also closed lower on Wednesday as investors took profits after robust gains in November and digested the latest economic data. The S&P 500 and Dow Jones slipped 0.40% and 0.30%, respectively, pulling back from record highs set earlier, while the Nasdaq 100 dropped 0.80%, driven by declines in technology giants like Nvidia (NASDAQ:NVDA), Meta (NASDAQ:META), and Microsoft (NASDAQ:MSFT).
In Europe, stock markets extended losses for a second session. The Eurozone’s Stoxx 50 fell 0.60% to 4 734, and the pan-European Stoxx 600 edged 0.20% lower to close at 505. Investors weighed the European Central Bank’s policy outlook and potential tariff threats from the incoming US administration. ECB Governing Council member Isabel Schnabel stated that while the Eurozone is not heading into a recession, careful consideration is needed to avoid rushing into rate cuts.
Asian markets delivered a mixed performance on Wednesday. Hong Kong’s Hang Seng outperformed, gaining more than 2%, while Japan’s Nikkei had a quieter session, ending nearly 1% lower.
Brent crude oil futures traded below $73 per barrel on Thursday, fluctuating within a narrow range as markets anticipated the upcoming OPEC+ meeting. Speculation is growing that the group might delay January’s planned production increase in response to a potential supply surplus. Geopolitical developments in the Middle East also remain a focus, with the ceasefire between Israel and Hezbollah easing tensions but uncertainty lingering after strong remarks from Israeli Prime Minister Netanyahu.