JSE, rand firm as investors digest US and UK rate hikes

The JSE tracked mostly firmer global markets yesterday as investors digested the Federal Reserve’s interest rate hike the day before.

The Fed increased its benchmark rate by 25 basis points — the ninth hike since March last year — taking the upper band of the Federal Funds Rate to 5%.

Chair Jerome Powell said that while the central bank was open to additional tightening, its federal open market committee also considered pausing interest rates.

However, strong labour market data a week earlier had swayed their decision.

The JSE gained 0.45% to 75,585.23 points, bolstered by retailers (1.18%), food producers (1.06%), financials (0.98%), industrials (0.94%) and banks (0.91%).

The top 40 added 0.44%, but industrial metals and resources lost 1.57% and 0.89%, respectively.