The JSE bounced back from early losses to close slightly higher at 86 582 on Thursday, following the lead of global markets, as strong economic data from the US eased concerns about a potential slowdown. This also solidified expectations that the Federal Reserve will continue its rate-cutting cycle, albeit at a slower pace. On the domestic front, South Africa's central bank governor, Lesetja Kganyago, advocated for reducing the current 3% to 6% inflation target, arguing that a narrower target could enhance investor confidence by reinforcing the commitment to price stability. At 18h30, Business Day reported that the rand had weakened 0.51% to R17.69/$, 0.18% to R19.15/€ and 0.61% to R23.00/£.
Chinese stocks fell on Thursday, erasing earlier gains due to the absence of strong policy support for China's struggling property sector. In a special briefing led by housing minister Ni Hong, top Chinese officials announced plans to expand a "white list" of real estate projects and increase bank lending for unfinished developments to 4 trillion yuan by year-end, as part of efforts to revive the sector, according to Trading Economics. However, the market was disappointed as China mainly relied on existing policies rather than introducing new stimulus measures. On the economic front, Trading Economics reported that China's economy expanded by 4.60% year-on-year in Q3 and 4.80% over the first three quarters, falling short of the annual growth target of around 5%. Nevertheless, the National Bureau of Statistics (NBS) noted that the mainland's economic performance remained generally stable, with some recent positive developments despite increasingly complex external conditions.
Wall Street traded in mixed fashion on Thursday, with semiconductor stocks standing out as top performers thanks to upbeat corporate and economic reports. The S&P 500 dipped slightly after briefly reaching a new record, the Dow Jones rose by 161 points after setting a fresh all-time high of 43 272 points. While the Nasdaq 100 saw a modest increase.
In Europe, the STOXX 50 and STOXX 600 continued to rise on Thursday afternoon, each closing 0.80% higher as traders concentrated on new corporate earnings. Meanwhile, the European Central Bank cut borrowing costs by 25 basis points, as anticipated, lowering the key deposit rate to 3.25%, the lowest since May 2023. The bank's forward guidance remained largely unchanged.
Oil prices edged higher, recovering some of the steep losses from the previous two sessions after industry data revealed an unexpected decline in US crude inventories last week. Brent crude futures increased by 0.60% to $74.67 per barrel at the close of local business, while US West Texas Intermediate crude futures also rose by 0.6% to $70.84 per barrel. Gold prices rose on Thursday, remaining just below record highs, supported by uncertainties related to the US election and the anticipation of additional interest rate cuts by major central banks. Investors awaited a series of US economic data for further guidance. By 18h45, spot gold was up 0.30% to trade at $2 682.14 per ounce.
