JSE to contend with gloomy global data on Wednesday
The JSE is likely to follow weaker global markets on Wednesday, as gloom sets in over the state of the global economy.
A US manufacturing index on Tuesday fell to a 10-year low in September, prompting sharp losses on US markets, while the World Trade Organization (WTO) also slashed its global trade growth forecast for 2019 to 1.2%, from 2.6% previously.
The WTO cited the effects of the US-China trade war for the reason trade growth has dropped to its weakest level since 2009, when businesses were reeling from the effects of the global financial crisis.
At 6.15am on Wednesday, Asian markets were subdued, though Japan’s Nikkei had added 0.59%. The Australian Securities Exchange was down 1.17% and Hong Kong’s Hang Seng 0.3%.
Gold had slipped 0.15% to $1,477.03/oz and platinum 0.58% to $872.39/oz. Brent crude was up 0.15% at $59.30 a barrel.
Tencent, which influences the JSE via Naspers and Prosus, had slumped 1.45% in Hong Kong.
The rand was steady at R15.3199/$, having dropped 1.23% on Tuesday, its worst one-day performance in almost two months.
The rand had been buffeted by concerns about global trade on Tuesday, said Peregrine Treasury Solutions corporate treasury manager Bianca Botes in a note. It is quiet on the data front on Wednesday, she said, with two speeches by US Federal Reserve policy officials the only noteworthy events.
There is also little in terms of scheduled corporate releases, though some focus may be on the ANC, which on Wednesday is scheduled to announce plans to stimulate SA’s economy.
UK Prime Minister Boris Johnson is also set to unveil his final offer on Brexit to the EU later on Wednesday.
Source: businesslive.co.za
