The rand touched its weakest level in more than four months on Friday, hitting an intraday low of R19.31/$. Along with other emerging-market currencies, it weakened as investors considered the possibility of delayed interest rate cuts by the US Federal Reserve (Fed). Meanwhile, the FTSE/JSE All Share Index (ALSI) closed with slight gains amid mixed global markets. The rally, driven by strong earnings results from Nvidia (NASDAQ:NVDA), lost momentum.
On Friday, US stock markets closed near their all-time highs. The S&P 500 saw a slight increase, while the Dow Jones gained 62 points. However, the Nasdaq, which had reached record levels earlier in the day, ended with a 0.30% loss. Nvidia's stock finished 0.40% higher, reaching a new all-time high of $805.55 and surpassing a $2 trillion valuation. Carvana (NYSE:CVNA) experienced a significant surge of 31.80% after reporting a narrower loss in the fourth quarter.
The Shanghai Composite Index increased by 0.55% to close at 3 005. This marked the eighth consecutive session of gains, with a total increase of 4.85% for the week. Investor confidence was boosted by a series of market-supportive measures and further monetary easing. The Shenzhen Component also rose by 0.28% for the day and 2.82% for the week.
Frankfurt's DAX 40 reached a new record high of 17 420 points. This was attributed to investors' positive response to dovish comments made by European Central Bank (ECB) officials. The market also closely followed updated earnings reports from major German companies and key economic data. ECB member Centeno suggested that the central bank should consider a rate cut as early as March 2024, while his colleague Schnabel expressed confidence that inflation expectations were well managed.
In commodities, Brent crude fell below 2% on Friday to trade at $82 a barrel at 18h00. Gold, however, rose by 0.40% to trade at $2 027 an ounce at the same time.
