Hawkish comments from US Fed push JSE lower

The JSE opened lower on Thursday, tracking global markets, after the US Federal Reserve dampened market expectations of further monetary policy easing. 

The Fed cut the interest rate by 25 basis points, the first cut in more than a decade and one that had been priced in by the market. US Federal Reserve chair Jerome Powell, however, said the rate cut was not the start of an easing cycle, dashing the hope that the Fed will cut rates in the coming months. 

Earlier, the Shanghai composite index fell 0.81%, Hong Kong’s Hang Seng was down 0.74% and Japan’s Nikkei 225 lost 0.86%. 

The JSE all share fell 0.26% to 56,636.60 points and the top 40 0.21%. Gold miners were down 3.15% and resources 1.45%. 

Sappi slumped 6.48% to R48.80 after the company announced that its Canadian subsidiary has acquired the Matane high-yield hardwood pulp mill in Quebec, Canada, from Rayonier Advanced Materials for $175m.

Mondi dropped 4% to R299.50, despite saying on Thursday that its interim dividend grew by 27% to 27.28 euro cents.  

Liberty had fallen 0.12% to R108.51, despite the financial services company saying on Thursday that its profits before tax grew 51% to R3.7bn for the six months ended June. 

British American Tobacco climbed 3.42% to R529.95 after it said on Thursday that its revenue for the six months to end-June rose 4.6% to £12.17bn

Woolworths had fallen 0.62% to R54.66 after the retailer said on Thursday that it has reduced the valuation of its Australian department store David Jones by A$437.4m.

The Absa purchasing managers index (PMI) for July is due later in the day as well as total vehicle sales for July. 

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