JSE starts the day weaker, taking cue from Asian stocks

The JSE opened lower on Thursday morning, tracking Asian markets.

Asian stocks opened higher but shed their gains in intra-day trade as Hong-Kong protests put some pressure on Chinese stocks. The Dow on Wednesday hit a record high and the S&P 500 looked set to breakthrough 3,000 points as the markets continue to bet on the likelihood that the US federal Reserve will cut interest rates in July. 

Earlier this week, markets rallied following progress in the US-China trade negotiations as the two  economic superpowers agreed to resume talks but some analysts are not too optimistic that the two countries will soon reach a deal. 

“The US and Chinese officials will be talking on the phone next week, according to the latest news, but the chances for significant progress are low. Hence, the trade war story should continue being one of the major talking points in the second half of the year,” London Capital Group senior market analyst, Ipek Ozkardeskaya said in a note. 

The Shanghai Composite earlier fell 0.33% and Hong Kong’s Hang Seng 0.13% as antigovernment protests intensify. Japan’s Nikkei 225 was also down 0.53%.