The JSE was up more than 1% on Wednesday, closing just one point shy of a record high as US markets came under pressure due to inflation worries and higher unemployment. Precious metals performed best, led by Impala Platinum, up 6.8%, and Valterra, up 4.24%, while Northam Platinum gained 3.81% and Sibanye-Stillwater 2.66%. With inflation ticking up in the US since April and unemployment there at a four-year high, money is moving away from the country’s major markets to developing markets.
Policy uncertainty under US President Donald Trump has spooked investors, with the Dow Jones industrial average having now fallen for three days on the trot. Trump’s trade tariffs, many of which were applied in April, have seen prices in the US rise for imported goods, while his threats against Venezuela including a blockade on oil tankers entering or leaving that country have seen oil prices break a four-day losing streak. At 5.55pm Brent crude had gained 1.37% to $59.73 a barrel.
Improved sentiment towards South Africa, as well as lower interest rates in the US, have seen money move away from the world’s largest economy, with local investments benefiting. The rand was also firmer on Wednesday, reaching R16.69/$, a level last seen in January 2023. Bonds firmed slightly too, with the yield on blended ten-year paper falling three basis points to 8.37%.
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