Markets were mainly flat on Wednesday as most investors waited on the sidelines to see whether the US Federal Reserve (Fed) would keep interest rates steady at decade-high levels at their meeting late last night. “The central bank is expected to keep interest rates steady, but all eyes will be on the Fed's plans for next year, particularly regarding potential rate cuts and their timing. Meanwhile, both headline and core producer inflation came below forecasts, a day after the CPI report came largely in line with expectations,” reported Trading Economics. At 19h00 the Dow was up by 0.04%, the S&P by 0.12% and the Nasdaq by 0.10%.
European markets closed mixed yesterday as investors waited for the interest rate decision by the European Central Bank expected this afternoon, and after data showed that the UK economy contracted by 0.30% from September 2023, “reversing the growth from the previous two months, and worse than market forecasts of a flat reading.”
Caution ahead of the Fed interest rate decision also caused the local bourse to close flat yesterday. Latest data also showed that local “headline inflation decelerated to 5.50% in November 2023, down from a five-month high of 5.90% (seen) in October and just below market forecasts of 5.60%, staying within the South African Reserve Bank (SARB)’s 3% (to) 6% target band,” added Trading Economics. Data also showed that local retail sales unexpectedly fell by 2.50% in October 2023, worse than the 0.90% increase markets expected.
The Hang Seng closed down by 0.89% on Wednesday “after Chinese leadership in its annual meeting disappointed investors with a lack of clear support measures to revive a slowing economy.” In contrast, the Nikkei rose 0.25% “as robust business confidence data in Japan lifted market sentiment.”
Gold firmed slightly, trading at $1 981.11 an ounce at 19h00, while a barrel of Brent crude cost $74.35 at the same time.
This is the last Daily Investment Update for 2023. Thank you for your support throughout the year and enjoy the festive season. Our first 2024 edition will be published on 17 January 2024.
