JSE opens lower in cautious trade ahead of Trump-Juncker meeting

A positive close on the Dow failed to support the JSE on Wednesday morning, amid mixed Asian and European markets. This was ahead of the meeting between US President Donald Trump and EU commission president Jean-Claude Juncker.

Banks gained on a slightly firmer rand but industrials tanked on a weaker Naspers.

Trading was cautious ahead of the Juncker meeting, with some analysts predicting the meeting was bound to deliver few tangible results after Trump tweeted in favour of tariff-free trade between the US and the EU.

On Tuesday, positive local and international news helped the JSE push higher, with the bourse recording broad-based gains.

The Dow closed 0.79% higher on Tuesday.

The Nikkei 225 gained 0.46% on Wednesday, but the Shanghai Composite softened 0.07%. The Hang Seng rose 0.9%. The FTSE 100 dropped 0.3% at the opening.

FxPro analysts warned that a dangerous situation may be developing, with equities climbing and bond yields rising as global growth becomes more fragile.

They said bilateral trade tariffs stimulated inflation, which is already close to the target levels or slightly exceeded them in some countries. The lowest unemployment rate in the decade in the US will only accelerate this process.

“At the same time, fear around trade was harmed by economic growth, which already shows a slowdown,” they said.

Commodity prices were generally higher after Brent crude climbed 0.33% to $73.86 a barrel.

The all share was 0.15% lower at 56,967.90 points and the top 40 dropped 0.2%. Industrials lost 0.46%, resources 0.44% and platinums 0.4%. Banks climbed 1.74%, financials 0.69% and food and drug retailers 0.34%.

Anglo American dropped 1.35% to R291.13.

British American Tobacco slipped 0.31% to R692.33.

After jumping 7% in the previous session on upbeat interims, Anglo American Platinum softened 0.28% to R384.52.

Standard Bank rose 1.8% to R201.57 and FirstRand 1.69% to R66.88.

Steinhoff International rebounded 14.35% to R2.47.

Hammerson dropped 1.15% to R91.98.

Naspers lost 1.4% to R3,372.

Vodacom rebounded 2.23% to R128.31.

Source: businesslive.co.za