JSE drops as global markets remain subdued

The JSE was lower on Thursday morning, in line with most global markets as risk factors weighed on investor sentiment.

The US said on Wednesday that it would impose 10% tariffs on Airbus planes made in Europe over illegal EU aeroplane subsidies. This comes after the World Trade Organization approved the imposition of duties on $7.5bn worth of EU goods, by the US.

“The levies on a variety of European goods from cheese to planes may be fair game from the Trump administration after the WTO ruling, but it’s safe to say there will be retaliation and the White House may find itself fighting an election and a trade war on two fronts at the same time. Trump does not like to make life easy for himself,” Oanda senior market analyst Craig Erlam said.

Reports that US nonfarm payrolls increased less than expected in September have added to market fears about the state of the world’s largest economy.

Earlier, Japan’s Nikkei 225 was down 2.01% and Hong Kong’s Hang Seng 0.26% while the Shanghai Composite was closed.

At 11am, the JSE had lost 0.56% to 53,701.20 points and the top 40 0.64%. Industrials were down 0.14% and resources 1.77%. 

Datatec added 1.63% to R33.63. The IT company said on Thursday that it expected its headline earnings per share (HEPS) to more than double in the six months to end-August to between two US cents and 2.5c.

Zeder was down 1.51% to R4.58. The company said on Thursday that it expects its HEPS to have fallen as much as 93.4% in the six months to end-August to between 2c and 2.8c. 

The Standard Bank purchasing managers’ index fell to 49.2 index points in September from 49.7 in the previous month, data showed on Thursday.

[email protected]