The FTSE/JSE All Share Index (ALSI) remained relatively flat on Thursday, mirroring mixed trends in global markets, as investors remained cautious ahead of the latest US unemployment rate for clues about the US Federal Reserve's (Fed’s) future interest rate decisions. The market is expecting the unemployment rate to stay steady at 3.80% when the latest US jobs report is released later this afternoon. The ALSI closed flat, 0.04% lower, with major indices displaying divergent performances. Meanwhile, the local currency remained robust, hovering around R18.62/$ at 17h55.
Wall Street made gains on Thursday following the Fed's decision to keep interest rates steady. Despite Fed Chairman Jerome Powell suggesting that persistently elevated inflation could delay an anticipated rate reduction in the US, he dismissed discussions about the necessity of raising rates once more. Latest data also showed that the amount of new jobless claims filed by Americans remained stable at a lower level last week, indicating that the labour market still remains relatively tight.
On Thursday, the Nikkei dropped 0.10% as Japanese stocks fell for the second consecutive session, reflecting fragile market sentiment. There was minimum trade in mainland China as they are observing the five-day Labour Day holiday.
The FTSE 100 surged to a new record peak of 8 160 points, rising by more than 0.50% yesterday thanks to favourable corporate news. Elsewhere, Frankfurt's DAX ended slightly lower at 17 896 points as investors assessed the Fed's recent policy announcement and various corporate updates.
In commodities, Brent crude oil weakened to $83.63 at 18h05 while spot gold was trading at $2 298 around the same time.
