The JSE was weaker on Tuesday while global markets were mixed as the fast-spreading Delta Covid-19 variant and weak US manufacturing growth weighed on sentiment.
Data on Monday showed that US manufacturing activity grew at a slower pace in July for the second straight month, as raw material shortages persisted.
Financial markets wobbled overnight after the US manufacturing PMI did not hit the heady heights expected by markets, Oanda senior market analyst Jeffrey Halley said.
“To be fair, a print of 59.5 is still impressive, but like technology stocks, the bar is set high, and markets have itchy trigger fingers nowadays if the music isn't playing loud enough,” said Halley.
Rising Covid-19 cases in some parts of Asia and the US fuelled by the Delta variant continue to threaten global economic recovery, with China dealing with its broadest Covid-19 outbreak since the virus first emerged there in late 2019
“We can also throw the Covid-19 Delta variant into the mixture, with concerns rising once again that the global recovery could be thrown off track by the virus,” said Halley.
“The rise in US cases also is of concern, but what is spooking markets is China. It's not a huge reach to extrapolate even more supply chain disruptions, especially if it proves as elusive to control for Chinese authorities as it has to officials globally.”
At 10.35am, the JSE all share had lost 0.31% to 68,611.65 points and the top 40 0.37%. Industrials had lost 1.23%. Banks had gained 1.52%, financials 1.20% and resources 0.20%.
At the same time in Europe, FTSE 100 had gained 0.49% and France’s CAC 40 0.76%, while Germany’s DAX was flat.
Earlier, the Shanghai Composite lost 0.47%, Hong Kong’s Hang Seng 0.48% and Japan’s Nikkei 225 0.50%.
At 11.09am, the rand had strengthened 0.70% to R14.3541/$, 0.52% to R17.0562/€ and 0.50% to R19.9643/£. The euro was unchanged at $1.1881.
Gold lost 0.24% to $1,809.25/oz, while platinum was flat at $1,053.59/oz. Brent crude gained 0.33% to $73.46 a barrel.
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