JSE could pull back on Friday as Trump reignites trade war
SA stocks could open in the red on Friday after US President Donald Trump announced fresh tariffs on $300bn of Chinese imports, dashing hopes that a resolution to the protracted trade dispute was in sight.
This follows inconclusive talks between the world’s two biggest economies in Shanghai earlier in the week. Trump also threatened to raise tariffs further if negotiations do not progress.
“Markets are likely to see a flight to safety today given Trump’s re-escalation of trade tensions with China and weak US economic data,” analysts at Singapore’s OCBC Bank said in a note.
Hong Kong’s Hang Seng index was 2.4% down on Friday amid thinly veiled threats that China could deploy its army to quell pro-democracy protests in the special administrative region.
The Shanghai Composite lost 1.7% and Japan’s Nikkei 225 slipped 2.6%. Korea’s Kospi was 0.8% down and Australia’s main benchmark 0.3%.
Chinese internet and gaming giant Tencent, which is about 31% owned by Naspers, plunged 2.9% in Hong Kong.
JSE-heavyweight BHP Group slid 3.1% in Australia.
Meanwhile, Gauteng-based electric cables manufacturer South Ocean Holdings is due to report half-year results on Friday. The company said recently its headline earnings per share were expected to be between 3c and 3.14c, versus a headline loss per share of 0.7c previously.
No major data releases are expected locally on Friday. Elsewhere, the US is expected to publish a range of data, including nonfarm payroll and unemployment figures.
The rand weakened against major currencies overnight following Trump’s tariff announcement and hawkish comments from the US Federal Reserve on Wednesday.
The local currency was trading at R14.63/$, R17.72/£ and R16.21/€ on Friday morning.
Source: businesslive.co.za
