The JSE was weaker on Tuesday morning, while its global peers were mixed as investor focus shifted to US corporate earnings reports for the fourth quarter.
It has been a relatively quiet start to the week, with US trading resuming after a public holiday on Monday. Investors, however, continued to fret over tighter monetary policy and inflation.
Signals from the US Federal Reserve showed its monetary policy group — the Federal Open Market Committee (FOMC) — on track for earlier, faster rate increases. Markets are pricing in three interest-rate increases from the central bank in 2022, with the first in March. Recent readings of historic inflation support the notion that the Fed will tighten policy.
“Stocks are set for a cautious start as traders weigh the economic recovery from the pandemic, while corporate earnings are expected to be a major definer of investor sentiment this week,” said Oanda senior market analyst Jeffrey Halley.
At 10.10am, the JSE all share had lost 0.45% to 75,256.64 points and the top 40 0.53%. Industrial metals had gained 0.4% and resources 0.23%. Industrials had lost 1.09%, precious metals 0.69%, banks 0.34% and financials 0.33%.
At the same time in Europe, London’s FTSE 100 had lost 0.54%, France’s CAC 40 0.94% and Germany’s DAX 0.91%.
Earlier in Asia, the Shanghai Composite added 0.8%, while Hong Kong’s Hang Seng lost 0.51% and Japan’s Nikkei 0.27%.
At 9.57am, the rand had weakened 0.48% to R15.4568/$, 0.48% to R17.6161/€ and 0.60% to R21.0915/£. The euro was unchanged at $1.1399.
Gold lost 0.3% to $1,813.82/oz and platinum 0.62% to $970.50. Brent crude was 1.35% firmer at $87.67 a barrel.
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