The JSE tracked weaker global markets on Tuesday as investors mull a possible US fiscal stimulus package, while focus turns to the presidential debate later.
US President Donald Trump and Democratic nominee Joe Biden are set to face off in the first presidential debate, an event analysts believe will affect market sentiment.
Moderator Chris Wallace of Fox News has chosen the economy, the US supreme court, Covid-19, race, and the integrity of the election as topics of discussion.
“We’re just over a month away from what is going to be an election for the ages and Covid-19 has turned the election on its head. A tightening of the polls over the next month will only add to the drama and uncertainty in the markets,” said Oanda senior market analyst Craig Erlam.
Monday’s brief show of optimism is fading as investors take a reality check on the chances of fiscal stimulus and the emerging risks from a resurgent coronavirus.
Hopes of a new US stimulus package will likely rest on the presidential debate developments. House Democrats released their $2.2-trillion proposal on Monday evening, a move that has so far been met with silence from the Trump administration.
Meanwhile, there are signs that winter may be a difficult time for the world’s biggest economy, with experts warning that the virus will spread more readily then, putting the healthcare system under renewed pressure.
The JSE all share lost 0.39% to 54,506.88 points and the top 40 0.51%. Industrials lost 0.74% and resources 0.58%. The gold mining index gained 2.72%, platinum miners 1.50%, banks 0.80% and financials 0.67%.
The Dow Jones industrial average was last seen down 0.55% to 27,432.25 points. In Europe, the FTSE 100 lost 0.53%, Germany’s DAX 30 0.48% and France’s CAC 40 0.27%.
The rand firmed for a second day, reaching an intra-day best of R16.9128/$. At 5.13pm, it had firmed 0.83% to R16.9078/$, 0.14% to R19.8529/€ and 0.79% to R21.7156/£. The euro had firmed 0.63% to $1.1737.
Data from Stats SA released on Tuesday showed that SA saw 2.2-million job losses in the second quarter of 2020 during the worst of the hard Covid-19 lockdown.
Despite the dramatic decline in the number of working people, SA’s unemployment rate fell to 23.3% in the second quarter from 30.1% in the first, according to Stats SA’s quarterly labour force survey.
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