The JSE opened lower on Friday as the local market followed weaker global markets. It lost ground on the increased reality of further interest-rate increases in the US and hawkish views expressed by central banks in the UK and eurozone.
Banks‚ financials and retailers were early-morning casualties in risk-off trade.
Resources stocks showed only mild reaction to lower commodity prices‚ spooked by lower oil prices‚ as the weaker rand held the sector to a steady opening.
The Dow closed 0.74% lower at 21‚320.04‚ with the Nasdaq and S&P500 closing at their lowest levels in more than a month. That was despite private-sector US jobs data coming in lower than expected ahead of the release of nonfarm payroll data on Friday‚ which mitigates against an overly hawkish stance from the US Federal Reserve.
Analysts said company-specific issues dragged US markets down‚ with General Electric (GE) 3.8% lower after the EU’s antitrust watchdog said GE may have misled regulators when the EU was reviewing its $1.65bn deal with LM Wind Power. Tesla fell 5.58% after its Model 5 failed to receive a top safety award.
US markets failed to benefit from a weaker dollar with the euro surging in late trade on Thursday after European Central Bank (ECB) minutes again signalled a change in the ECB’s monetary stance over time.
"They confirmed what we know: that the direction of travel for the central bank’s monetary policy was changing‚" said deVere group analyst Tom Elliott.
But‚ Elliott added‚ while the direction of ECB monetary policy may be reversing‚ the likelihood of an actual reversal happening soon‚ or even this year‚ was slim.
The euro gained ground in response‚ firming above the $1.14 level.
The Nikkei 225 was 0.32% lower and the Hang Seng lost 0.42%.
The platinum price was 0.54% lower at $903 an ounce and gold lost 0.22% to $1‚221.75 an ounce. Brent crude shed 0.73% to $47.52 a barrel.
At 9.41am the all share was 0.39% lower at 52‚080.90 and the blue-chip top 40 also lost 0.39%. Banks dropped 1.38%‚ general retailers 1.30%‚ financials 0.86% and food and drug retailers 0.66%. The gold index gained 0.20%.
Early-morning focus was on market heavyweight Naspers after ratings agency Moody’s assigned a Baa3 rating to its latest $1bn bond issuance‚ one notch above subinvestment or junk grade. Naspers was off 0.26% to R2‚487.62.
Sasol was down 1.32% to R367.95.
Among banks Barclays Africa dropped 1.95% to R139.61‚ Nedbank 1.74% to R206.26 and FirstRand 1.54% to R48.05.
Among financials Discovery lost 1.31% to R128.20 and MMI Holdings 1.22% to R20.17.
Among retailers Woolworths shed 2.33% to R60.84.
MTN lost 1.67% to R115.54.
-BusinessLIVE
Source: Tiso Black Star Group Digital.
JSE slumps on lower global markets as ECB prepares for monetary policy change
Banks‚ financials and retailers were early-morning casualties in risk-off trade.
Resources stocks showed only mild reaction to lower commodity prices‚ spooked by lower oil prices‚ as the weaker rand held the sector to a steady opening.
The Dow closed 0.74% lower at 21‚320.04‚ with the Nasdaq and S&P500 closing at their lowest levels in more than a month. That was despite private-sector US jobs data coming in lower than expected ahead of the release of nonfarm payroll data on Friday‚ which mitigates against an overly hawkish stance from the US Federal Reserve.
Analysts said company-specific issues dragged US markets down‚ with General Electric (GE) 3.8% lower after the EU’s antitrust watchdog said GE may have misled regulators when the EU was reviewing its $1.65bn deal with LM Wind Power. Tesla fell 5.58% after its Model 5 failed to receive a top safety award.
US markets failed to benefit from a weaker dollar with the euro surging in late trade on Thursday after European Central Bank (ECB) minutes again signalled a change in the ECB’s monetary stance over time.
"They confirmed what we know: that the direction of travel for the central bank’s monetary policy was changing‚" said deVere group analyst Tom Elliott.
But‚ Elliott added‚ while the direction of ECB monetary policy may be reversing‚ the likelihood of an actual reversal happening soon‚ or even this year‚ was slim.
The euro gained ground in response‚ firming above the $1.14 level.
The Nikkei 225 was 0.32% lower and the Hang Seng lost 0.42%.
The platinum price was 0.54% lower at $903 an ounce and gold lost 0.22% to $1‚221.75 an ounce. Brent crude shed 0.73% to $47.52 a barrel.
At 9.41am the all share was 0.39% lower at 52‚080.90 and the blue-chip top 40 also lost 0.39%. Banks dropped 1.38%‚ general retailers 1.30%‚ financials 0.86% and food and drug retailers 0.66%. The gold index gained 0.20%.
Early-morning focus was on market heavyweight Naspers after ratings agency Moody’s assigned a Baa3 rating to its latest $1bn bond issuance‚ one notch above subinvestment or junk grade. Naspers was off 0.26% to R2‚487.62.
Sasol was down 1.32% to R367.95.
Among banks Barclays Africa dropped 1.95% to R139.61‚ Nedbank 1.74% to R206.26 and FirstRand 1.54% to R48.05.
Among financials Discovery lost 1.31% to R128.20 and MMI Holdings 1.22% to R20.17.
Among retailers Woolworths shed 2.33% to R60.84.
MTN lost 1.67% to R115.54.
-BusinessLIVE
Source: Tiso Black Star Group Digital.
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