The JSE was weaker on Thursday morning, along with its global peers, as investors awaited the crucial European Central Bank (ECB) policy announcement later in the day.
The ECB is set to announce an imminent end to large-scale asset purchases, paving the way for the first increase in interest rates in more than a decade in July.
The plan would match a timetable unveiled by ECB president Christine Lagarde, who wants to end the subzero borrowing costs in the third quarter. Officials are striving to tame record inflation while averting further damage to an economy bruised by the war in Ukraine. Borrowing costs have been increased around the world to tackle intense price pressures.
“The ECB has a lot of questions to answer. When will net asset purchases officially end? How many rate hikes can we expect this year? How will they manage the fallout in the bond markets? The task is far from straightforward but the cost of inaction is potentially severe,” said Oanda senior market analyst Craig Erlam.
“The central bank will have to tread carefully in the coming months to prevent unwanted consequences,” he said.
At 10.35am, the JSE all share had lost 0.8% to 69,392.21 points and the top 40 0.93%. Industrial metals had fallen 1.46%, resources 1.28%, precious metals 1.26% and industrials 0.93%.
At the same time in Europe, London’s FTSE 100 had lost 0.65%, France’s CAC 40 0.66% and Germany’s DAX 0.96%.
Earlier in Asia, the Shanghai Composite fell 0.76% and Hong Kong’s Hang Seng 0.77%, while Japan’s Nikkei was little changed.
At 10.21am, the rand had strengthened 0.42% to R15.2085/$, 0.59% to R16.2593/€ and 0.71% to R19.0078/£. The euro was 0.15% weaker at $1.0698.
Gold lost 0.23% to $1,849.24/oz and platinum 2.23% to $988.50/oz. Brent crude was down 0.28% to $123.30 a barrel.
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