The JSE was weaker on Tuesday morning, with its global peers mixed as risks in China persisted.
China’s energy crisis is the latest headache for global supply chains. Factories are being forced to conserve energy by curbing production.
The disruption comes as producers and shippers race to meet demand for everything as the year-end holiday shopping season approaches. Meanwhile, analysts have warned that the energy supply restrictions may affect China’s listed industrial stocks.
“China’s electricity crunch is gathering steam. Where China goes, so does the rest of the world it seems,” said Oanda senior market analyst Jeffrey Halley.
“If Chinese factories are closing and reducing production, logically, less resources will be required. If the situation drags on, it will likely be yet another roadblock in global supply chains as well,” Halley said.
At 10am, the JSE all share had lost 0.20% to 64,068.78 points and the top 40 0.19%. Banks had gained 1.61%, financials 1.14% and precious metals 0.36%. Industrial metals had fallen 0.97%, retailers 0.94%, industrials 059% and resources 0.41%.
At the same time, the FTSE 100 had lost 0.64%, France’s CAC 40 1.10% and Germany’s DAX 0.68%.
Earlier, the Shanghai composite gained 0.54% and Hong Kong’s Hang Seng 1.23%, and Japan’s Nikkei lost 0.19%.
At 10.01am, the rand had weakened 0.64% to R15.0396/$, 0.54% to R17.5706/€ and 0.36% to R20.5630/£. The euro was unchanged at $1.1685.
Gold lost 0.51% to $1,740.76/oz and platinum 0.89% to $972.79. Brent crude was 1.02% firmer at $80.20 a barrel.
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