JSE slips ahead of US GDP data release
The JSE opened lower on Friday as investors await second-quarter GDP figures from the US amid speculation that the US Federal Reserve may cut the interest rate by at least 25 basis points next week.
Markets are closely watching US economic data for an indication on whether the Fed will aggressively cut rates amid concerns of a slowdown in economic growth.
“It is highly likely that the Fed lowers its policy rate by 25 basis points next week. The probability of a 50 basis-point cut stands at a relatively low 17.5% level,” London Capital Group senior market analyst Ipek Ozkardeskaya said in a note.
“But this could change fast. Due today, the US GDP data could confirm a sharp slowdown from 3.1% to 1.8% quarter on quarter in the second quarter.”
On Thursday, the European Central Bank (ECB) kept its interest rates unchanged despite market expectations that the ECB would cut. The Bank did, however, hint that it may need to loosen monetary policy at future meetings.
Earlier, the Shanghai Composite fell 0.24% and Hong Kong’s Hang Seng 0.77% while Japan’s Nikkei 225 had gained 0.22%.
At 10.20am, the JSE had fallen 0.37% to 57,451.10 and the top 40 0.36%. Resources were down 1.42% and platinum miners 0.93%.
Omnia had fallen 2.81% to R33.17 after the company said on Friday that its shareholders had backed a plan to sell R2bn worth of new shares.
Dipula Income Fund A-shares earlier dropped 4.26% to R9.90 after the property company said on Friday that it made a non-binding offer to acquire 100% of shares in SA Corporate.
Source: businesslive.co.za
