JSE Declines as Investors Evaluate the Fed's Favoured Inflation Indicator

Published 2024/11/28, 08:33

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.

PSG Wealth Daily Investment Update, 28 November 2024

Read full report

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.