The FTSE/JSE All Share Index (ALSI) was little changed at 0.04% on Thursday as solid gains in resource-linked companies, especially gold miners, were partially offset by weakness in financials and industrials. The rand continued to strengthen and was trading R18.70/$ at 17h45 local time. In economic news, South Africa's current account deficit widened to 2.30% of GDP in the fourth quarter of 2024 from a revised 0.50% of GDP in the third quarter.
Wall Street's major indices ended higher for a third consecutive session, driven by strength in tech shares and positive economic data. The S&P 500 and Nasdaq 100 reached new record highs, rising by 1% and 1.46% respectively, while the Dow Jones was up 0.30% at 22h20. Comments from Federal Reserve (Fed) Chair Jerome Powell during his congressional testimony indicated a willingness to lower borrowing costs this year. On the data front, initial jobless claims were slightly higher than expected, and labour costs for the fourth quarter were revised slightly lower.
Asian equities were in the red on Thursday with both the Nikkei and Hang Seng falling close to 1.30% respectively after stronger-than-expected Chinese trade figures tempered expectations for additional policy easing. Data revealed that Chinese exports surged 7.10% y/y in January to February 2024, surpassing expectations for a 1.90% increase, indicating robust foreign demand.
The FTSE 100 index closed slightly higher at 7 692 on Thursday, extending gains for the third straight session after recovering from early losses. Meanwhile, Frankfurt's DAX 40 rebounded from early losses to reach an all-time high of 17 790 points, rising by 0.40%. The European Central Bank's decision to maintain record-high interest rates and reduce near-term inflation forecasts has bolstered expectations of an imminent rate cut.
In commodities, Brent crude was in the green on Thursday trading at $83.42 at 22h30, while gold increased by 0.48% to trade at $2 160 an ounce at the same time.
