The JSE was firmer on Monday morning, with its global markets mixed as investors digested Friday’s disappointing US jobs report. It is expected to be a quiet day in the markets with the US and Canada closed for the Labour Day holiday.
Data from the US showed the world’s biggest economy added only 235,000 jobs in August, well below the 665,000 expected by economists. The August numbers were the worst since January, showing the impact of the Covid-19 Delta variant on the pace of economic recovery.
“Friday’s US employment data substantially lowered the risks of a Fed taper this year, and any thoughts that the federal open market committee (FOMC) would signal a taper at this month’s meeting are now off the table. Add in the soft China data from last week, which usually runs a few months ahead of the US, and the hawks are in retreat,” said Oanda senior market analyst Jeffrey Halley.
“Today, US and Canadian markets are closed for Labour Day, so a more genuine reaction may appear tomorrow,” Halley said.
At 9.45am, the JSE all share had gained 0.39% to 66,631.51 points and the top 40 0.43%. Industrials had gained 0.98%, industrial metals 0.22% and retailers 0.17%. Precious metals had lost 1.02%, banks 0.18% and resources 0.12%.
At the same time in Europe, the FTSE 100 was little changed, while France’s CAC 40 had gained 0.29% and Germany’s DAX 30 0.30%.
Earlier, the Shanghai Composite added 1.12%, Hong Kong’s Hang Seng 0.86% and Japan’s Nikkei 225 1.83%.
At 9.45am, the rand had strengthened 0.31% to R14.2660/$, 0.52% to R16.9285/€ and 0.36% to R19.7500/£. The euro was 0.14% weaker at $1.1866.
Gold was little changed at $1,825.82/oz, while platinum gained 0.40% to $1,027.57. Brent crude was 1.26% weaker at $71.92 a barrel.
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