South Africa’s main stock index rises 0.5% as of 9:49 a.m. in Johannesburg, with miners contributing heavily to gains as investors seek to look past the latest tensions between Beijing and Washington. Banks are weaker before a central interest rates decision later Thursday.
A survey of 16 analysts surveyed by Bloomberg expect the South African Reserve Bank to cut the repurchase rate by 25 basis points.
“We are expecting the SARB to cut interest rates by another 25bps today in an effort to support the ailing economy, while the US will release initial jobless claims this afternoon,” Bianca Botes, executive director at Peregrine Treasury Solutions, says in an emailed note.
The U.S. issued an unexpected order Wednesday to close the Chinese consulate in Houston, ratcheting up tensions that have been simmering between the world’s two biggest economies.