JSE faces slipping Asian markets on Wednesday amid Fed jitters
The JSE looks set to join under-pressure Asian markets on Wednesday morning, with investor attention still squarely on future moves from global central banks.
Sentiment has been under strain in the wake of minutes from the US Federal Reserve last week, which pointed to an aggressive stance from the world’s most influential central bank, offering the prospect of high rates for an extended period and a downturn in economic activity.
Minneapolis Federal Reserve Bank President Neel Kashkari was the latest official to reiterate the Fed’s focus on controlling inflation ahead of all else, and said on Tuesday his biggest fear was underestimating the extent of price pressures, Reuters reported.
The comments come ahead of the Jackson Hole Symposium in the US, where Fed chair Jerome Powell will give a keynote speech on Friday.
In morning trade, the Shanghai Composite was down 1.38%, the Hang Seng 1.33%, while Japan’s Nikkei had lost 0.52%.
Tencent, whose direction is important to the local bourse given the Naspers stable, had lost 1.02%.
Gold was flat at $1,746.11/oz, while platinum was little changed at $875.50. Brent crude had fallen 0.36% to $99.69 a barrel.
The rand was 0.23% weaker at R17.03/$.
Locally, trade union federations Cosatu and the SA Federation of Trade Unions (Saftu) are embarking on a strike on Wednesday to protest a lack of job creation and deteriorating living standards.
SA’s consumer inflation numbers for July are due later, with expectations higher fuel prices drove the headline figure to an annual 7.7% in the month, from 7.4% in June.
Food services firm Bidcorp is due to release its results for the year to end-June later, expecting a rise in headline earnings per share (HEPS) of as much as 80%, though it didn’t go into detail in its recent trading update. The hospitality industry has, however, been recovering from Covid-19 in 2022.
Tailings retreatment specialist DRDGold is due to report a fall in HEPS of as much as 33% in its year to end-June later, reporting a climb in operating costs, a decrease in volumes, as well as lower prices.
Source: businesslive.co.za
