On Tuesday, the FTSE/JSE All Share Index (ALSI) edged slightly higher, trading above the 81 300 level. Investors kept a close eye on the outcome of the US Federal Reserve’s (Fed) two-day policy meeting, which concludes on Wednesday, and continued to monitor global earnings reports. The Fed is anticipated to maintain interest rates at their current level, though there may be hints of potential policy easing in the near future. On the corporate front, Alphamin Resources (JO:APHJ) and Telkom (JO:TKGJ) emerged as the top gainers, with increases of 4.96% and 2.64%, respectively. In contrast, Thungela Resources LTD (JO:TGAJ) , Anglo American (JO:AGLJ), and Glencore (JO:GLNJ) (LON:GLEN) experienced the largest losses, ranging from 3.47% to 4.45%.
In the US, stocks rose on Tuesday, with the three major indices adding nearly 0.30%. Traders are preparing for the Federal Open Market Committee’s (FOMC) monetary policy decision scheduled for tomorrow, while also digesting additional corporate updates. The financial sector was the strongest performer, whereas consumer staples lagged. Pfizer (NYSE:PFE) saw a 0.50% increase after raising its outlook, and PayPal (NASDAQ:PYPL) surged over 9% following an impressive performance in its transaction-margin dollars. Conversely, Procter & Gamble fell more than 5.80% due to disappointing revenue figures.
The Eurozone also posted gains on Tuesday, with the STOXX 50 rising by 0.50% and the STOXX 600 climbing 0.20%. These indices rebounded from the previous day’s losses as traders awaited key monetary policy announcements from the Fed, the Bank of England (BoE), and the Bank of Japan (BoJ), while also considering important economic data and fresh earnings reports. BP (LON:BP)'s shares increased by 2.70% after reporting a net profit exceeding expectations and raising its dividend.
In contrast, the UK experienced losses as the FTSE 100 slipped to around 8 240 on Tuesday, retreating from two-month highs recorded the previous day. This decline was attributed to mixed corporate earnings and cautious sentiment ahead of upcoming US and UK policy decisions. The main index was weighed down by the beverages sector, with Diageo (LON:DGE) falling nearly 10% following a greater-than-expected 4.80% drop in annual organic operating profit. Sage also declined by 6% after reporting organic revenue growth in line with consensus forecasts at 9%, though growth rates for its Business Cloud and other solutions were slightly slower than in the first half of the year.
In China, the Shanghai Composite fell by 0.43% to 2 879, and the Shenzhen Component decreased by 0.54% to 8 469 on Tuesday, marking their lowest levels in nearly six months. Persistent economic concerns, including weak manufacturing, a prolonged property crisis, and job insecurity, continued to dampen market sentiment. Investors are now awaiting the latest data on manufacturing and services activity for further insights.
Meanwhile, Japanese markets saw mixed results. The Nikkei 225 Index rose by 0.15% to close at 38 526, while the broader Topix Index lost 0.19% to 2 754. Japanese shares struggled for direction as the Bank of Japan began its two-day policy meeting. There is speculation that the central bank might raise rates by 10 basis points to 0.10%, and it is widely expected to announce plans for tapering its bond purchases.
In commodities, WTI crude futures fell to approximately $75.60 per barrel on Tuesday, reaching their lowest level since early June, due to ongoing concerns about demand from top consumer China. Conversely, gold rose to near $2 390 per ounce, recovering from previous session losses as investors anticipate upcoming policy meetings from major central banks.
