JSE slips after local inflation uptick

The South African rand edged weaker after a modest rise in headline inflation to 3.40% in September, up from 3.30% in August and just below market expectations of 3.50%. Despite the uptick, inflation remains comfortably within the South African Reserve Bank’s 3–6% target range, supporting expectations that monetary policy will stay on hold for now. Local equities also ended the session lower as investors weighed both domestic inflation data and broader global developments,

In the US, the Dow Jones Industrial Average slipped 320 points from its record close on Wednesday, while the S&P 500 fell 0.40% and the Nasdaq dropped 0.90%. Investors reacted cautiously to a mixed set of corporate earnings and renewed trade tensions, after Reuters reported that the White House may impose new restrictions on exports to China involving products built with US software. On the corporate side, Netflix plunged 10% as its results were hit by a tax dispute in Brazil, while Tesla lost 1.40% ahead of its earnings release following reports that some recently produced vehicles may suffer sudden battery power loss. Texas Instruments slid 5.90%, weighing on the broader semiconductor sector, with Intel dropping 3% and AMD falling by 3.90%, while Micron also retreated. 

European equities closed slightly lower on Wednesday, with the pan-European STOXX Europe 600 easing 0.20% to around 571.9 points as investors weighed disappointing corporate results against lingering macroeconomic uncertainty. In currency markets, the euro slipped marginally below $1.16.

Adding to the cautious tone, EU member states reached an agreement on Wednesday – a new sanctions package against Russia, due for formal adoption on Thursday, which includes a ban on Russian liquefied natural gas (LNG) imports.

Across the region, major indexes moved mostly lower: Germany’s DAX slipped around 0.30%, while France’s CAC 40 declined 0.60%. The UK’s FTSE 100, however, bucked the trend, rising 1% after softer-than-expected inflation data lifted market sentiment. 

Asian markets ended mixed with the Hang Seng dropping 0.90% amid wavering trade optimism, while Japan’s Nikkei 225 slipped 0.02% and the Topix gained 0.52% on expectations of a large-scale stimulus plan.

Commodities rebounded, with WTI crude oil climbing over 2% to $58.60 per barrel after reports suggested a potential trade deal between the US and India could reduce Russian crude imports and boost global demand.