The JSE is feeling the effects, although mutedly, of a global wave of optimism that has seen the Dow Jones reach record highs and European and Asian markets rally in the past week.
American stocks soared on Monday on the news that United States employers had created 165 000 jobs in April, taking the unemployment rate down to 7.5%, the lowest in four years. Standard & Poor's 500 index passed 1 600 for the first time and the Dow Jones industrial average hit an unprecedented 15 000.
European stocks advanced as China's exports climbed to 14.7% in April and imports reached 16.8%. The Asian superpower's trade surplus was also higher than expected at $18.2-billion, Bloomberg reported on Wednesday. European traders were further buoyed by a second month of strong industrial production figures from Germany.
Meanwhile, in Asia, optimism that the Bank of Japan will deploy more measures to beat deflation saw the MSCI Asia Pacific index climb to almost 144 on Wednesday evening.
Investor confidence was further boosted by interest rate cuts by the European Central Bank and the Reserve Bank of India last week, with Australia following suit on Tuesday.
But although stocks abroad saw record highs, those on the FTSE/JSE swelled more moderately. Stocks hit their highest in a month on Monday but fell slightly on Tuesday. Nevertheless, they regained on Wednesday and continued to climb, surging 1.6% to close at 40 456 on Wednesday evening.