JSE opens weaker in jittery trade as more Chinese tariffs loom

The JSE opened lower on Tuesday after the Dow’s weak performance on Monday and as the US seemed set to impose more tariffs against Chinese goods.

The Dow closed 0.99% down.

Asian markets were mixed on Tuesday, with the Nikkei 225 rising 1.45% and the Hang Seng falling 0.73%.

Oanda analyst Craig Erlam said a tariff on the remaining $257bn of Chinese imports had been threatened for some time. He said they could be imposed as early as December if talks between Chinese leader Xi Jinping and US President Donald Trump failed in November. “Given that neither side has shown much of a willingness to compromise until now, this seems rather likely,” Erlam said.

The rand gave little guidance to the market. After weakening to R14.7178 to the dollar in overnight trade, the local currency pulled back 0.5% to R14.6670 as the dollar held on to levels below $1.14 to the euro.

It was last seen at $1.1366 from $1.1373.

Expectations of a strong US economy and higher interest rates tend to boost the dollar by making it more attractive to yield-seeking investors. Most market participants believe the US Federal Reserve will raise rates a fourth time in 2018 and continue boosting rates in 2019, Dow Jones Newswires reported.

The gold price was 0.38% off at $1,224.45 an ounce and Brent crude edged up marginally to $76.96 a barrel.

At 9.55am the all share was 0.33% lower at 51,148.70 points and the top 40 lost 0.38%. General retailers lost 0.6%, industrials 0.56%, food and drug retailers 0.3%, banks 0.26% and financials 0.19%. Platinums rose 0.23%.

British American Tobacco rebounded 0.76% to R666.62.

Standard Bank slipped 0.79% to R164.53.

Shoprite lost 0.97% to R180.23.

Nepi Rockcastle was down 0.57% to R126.24.

Naspers lost 1.72% to R2,415, extending losses for the year to 30%.

Aspen Pharmacare added 2.86% to R149.14.

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