JSE could open lower on Wednesday as risk appetite wanes
SA stocks could open slightly lower on Wednesday, taking their cue from Asian markets, as risk appetite tapers off following the G20 Summit in Japan over the weekend.
While US stocks edged up to reach fresh highs on Tuesday, Asian equities were mostly lower on Wednesday morning on concerns that simmering trade tensions could weigh on the global economy.
After agreeing to a truce with China at the G20, US President Donald Trump threatened to impose new tariffs on goods from the EU.
Bank of England governor Mark Carney warned of a “widespread slowdown” to the global economy because of protectionism.
“With global risk appetite starting to waver yesterday, Asian markets may also open on a softer note this morning and tread lower today,” analysts at OCBC Bank in Singapore said earlier on Wednesday.
Hong Kong’s Hang Seng index was 0.2% lower on Wednesday morning, while the Shanghai Composite lost 0.7%. Japan’s Nikkei 225 fell 0.8% and Korea’s Kospi 1.1%, although Australia’s main benchmark added 0.5% after the country’s central bank cut interest rates and the nation posted a record trade surplus.
Chinese internet and gaming giant Tencent was 1.1% down in Hong Kong, suggesting a weak opening for major shareholder and Africa’s biggest public company, Naspers.
JSE-listed BHP Group was 0.3% up in Australia.
In SA, small-cap Chrometco is due to report annual results on Wednesday. The company has warned that its headline loss per share for the year to end-February grew 19%.
A services purchasing managers index (PMI) and a business confidence reading are due locally. Elsewhere, a services PMI release is due from the EU and UK, while initial jobless claims data is expected from the US later in the day.
The rand was flat on Wednesday morning at R14.11/$, R17.77/£ and R15.93/€.
Source: businesslive.co.za
