JSE ended higher following moderate rise in CPI

The South African rand held steady on Wednesday after inflation figures came in slightly below expectations, offering a mixed signal ahead of the South African Reserve Bank’s (SARB) interest rate announcement on Thursday. By 17h30, the rand was trading at R17.16 against the dollar. October’s headline inflation rose to 3.60% year-on-year. Supporting the local picture, Statistics South Africa reported that retail sales grew 3.10% in September, contributing to a positive session on the JSE, which closed 1.47% higher.

In the US, markets drifted lower as investors continued to digest the Federal Reserve’s (Fed) interest rate outlook. Major indices showed limited movement, with the Dow slipping roughly 100 points, while the S&P 500 and Nasdaq hovered near the flatline. Nvidia’s share price gained around 2% ahead of its earnings release, where markets expect strong—albeit slightly tempered—revenue growth. Investors remain focused on the company’s AI-related guidance, particularly whether significant data-centre spending will yield expected returns. Minutes from the Fed’s latest FOMC meeting revealed a divided committee: several officials supported a rate cut in October, others preferred to hold steady and a minority opposed any easing.

Across Europe, stocks inched higher following four consecutive sessions of declines. The STOXX 50 rose 0.30% to 5 552, while the STOXX 600 edged marginally into positive territory at 563. Market sentiment remained fragile as investors reassessed tech valuations, with Nvidia’s upcoming results adding to caution. Shares linked to the AI sector traded mixed ahead of the announcement.

In Asia, markets continued to face pressure. Hong Kong’s Hang Seng slipped 0.36%, marking its fourth consecutive decline, weighed down by Wall Street’s overnight weakness, the latest Fed minutes and caution ahead of key US jobs data. Political uncertainty added to the unease, with fears that a decline in President Donald Trump’s approval rating could prompt sizeable fiscal stimulus and fuel inflationary pressures. Japan’s Nikkei fell 0.34% to 48 538, while the Topix edged down 0.17%, with both indices under pressure from ongoing concerns about tech-sector valuations.

Commodity markets saw Brent crude fall over 2% to $63.40 per barrel following reports that the US is pushing to advance peace efforts between Russia and Ukraine. Meanwhile, gold prices held above $4 070 as Fed minutes signalled uncertainty around the timing of future rate cuts. The cautious outlook kept bullion stable supported by safe-haven demand yet capped by a firmer US dollar.