Cautious trade on JSE as trade truce sentiment wears off

The JSE was slightly subdued on Wednesday morning, tracking Asian markets as concern about a global economic slowdown weighs on sentiment.  

The post-G20 rally among global markets gradually faded after poor manufacturing data from major economies and the US tariff threats against the EU sparked concern about the trajectory of global economic growth. 

Earlier this week the US threatened to impose tariffs on $4bn worth of EU goods over the latter’s aircraft subsidies.  

The Shanghai Composite had fallen 0.94% and Hong Kong’s Hang Seng 0.26%, while Japan’s Nikkei 225 had gained 0.11%. 

At 10am the JSE all share and the top 40 were flat with the local bourse at 58,140  points. Banks were down 1.05% while gold miners climbed 4.25%.

EOH had fallen 0.86% to R19.65. The IT group said it would publish the findings of a forensic investigation into its dealings with the state on July 16.

Afrimat gained 2.99% to R32.70 after the building and materials company said it would not proceed with the R2.1bn acquisition of Australia-listed Universal Coal.

Truworths had fallen 2.18% to R67.35. The retailer said on Tuesday that its UK venture, Office, was considering a debt restructuring ahead of a repayment due in 2020. 

Naspers was down 0.29% to R3,465.01 after its Hong Kong-listed subsidiary, Tencent, was down 1.10% earlier. 

Locally, the Standard Bank purchasing managers’ index for June rose to 49.7 from 49.3 in May. The SA Chamber of Commerce and Industry is expected to release its business confidence index for June. 

mjoo@[email protected]