Gloomy global data sends JSE below 55,000 points

Further signs that the global economy is losing momentum weighed on the JSE on Wednesday morning, with the local bourse slipping back below 55,000 points amid broad-based losses.

Chinese industrial output growth in July missed market expectations, rising only 4.8% year on year, compared with the market’s target of 5.8% growth. This is the lowest growth since 2002.

“Well, if this isn’t a wake-up call to the People’s Bank of China, I’m not sure what is,” said Vanguard Markets managing partner Stephen Innes in a note. “But in the meantime, the wobbly data should send the market bears back on the prowl.”

German data was also subdued, showing that the EU’s largest economy contracted 0.1% in the second quarter of 2019, although this number was expected.

Locally, the rand has come off its worst levels of the week, trading 0.3% weaker at R15.1792/$ at 9.40am.

The all share had fallen 0.89% to 54,700.9 points and the top 40 had lost 0.85%. Banks were down 1.82%, food and drug retailers 1.28%, and general retailers 1.1%. Gold miners recovered 1.14%, having slumped 8.98% on Tuesday.

Gold was flat at $1,500.26/oz while platinum had lost 0.61% to $849.75. Brent crude was 0.18% softer at $60.80 a barrel.

Diversified miner Anglo American was down 3.32% to R328.48.

Sasol fell 2% to R328.48.

Kumba Iron Ore fell 6.76% to R423.03.

Standard Bank gave up 2.16% to R166.65, an eight-month low.

Car component manufacturer Metair was unchanged at R22.46, having said earlier that revenue rose 19% in the six months to end June, with the company upping its dividend 25% to 100c.

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