The JSE closed positively on Tuesday due to efforts to prevent further turmoil in the banking sector, including news that First Citizens BancShares (NASDAQ:FCNCA) will buy most of Silicon Valley Bank's business. US authorities are considering expanding an emergency lending program for banks, which may give First Republic Bank (NYSE:FRC) more time to improve its liquidity. The market is showing signs of improvement, but investors remain cautious. US regulators have assured investors that the banking system is stable, while also promising additional liquidity, leading to a pivot from safe-haven such as gold to riskier assets.
During the local market trading session, the Top 40 index closed up by 0.95%, while the Resources 10 sector rose by 2.36%, the Financial 15 climbed 1.37%, and the Industrial 25 increased by 0.13%. The rand traded at R18.18 against the US dollar, R22.41 against the Pound, and R19.69 against the Euro.
In the commodities market, Brent Crude oil is trading at $78.44 per barrel, WTI Crude oil is trading at $73.77 per barrel, Gold is currently trading at $1961.10, Platinum is now trading at $955, and Palladium is at $1415.10. In terms of oil, Russian Deputy Prime Minister Alexander Novak announced that the country should increase exports to "friendly" countries, citing increased supplies to India not seen in over two decades. Additionally, China's crude oil imports are expected to rise 6.2% in 2023 to 540 million tonnes.
Globally, the S&P 500 closed down by 0.16%, the Dow Jones closed down by 0.12%, and the Nasdaq closed down by 0.45%. Meanwhile, the FTSE 100 rose by 0.17%, the DAX by 0.09%, and CAC40 by 0.14%. In the Asian markets, the Nikkei 225 is currently up by 1.2% and the Hang Seng is up by 1.81%.
Market Moves (28 March 2023)
