The JSE was weaker on Wednesday morning, with its global peers mixed as the previous session’s rally stopped for breath.
Stock markets are paring gains after a phenomenal rebound on Monday and Tuesday. The rally saw the local bourse reach the best levels in two weeks, after falling to one-year lows as global financial markets suffered a brutal September.
“It’s been a very impressive relief rally, albeit one aided by a rose-tinted interpretation of certain economic indicators and a terrible plunge in the weeks before,” said Oanda senior market analyst Craig Erlam.
“This isn’t the time to get carried away but it is understandable that we’re seeing some relief. It all hangs on whether the data is the start of a weakening trend or just a blip, as with the July inflation drop,” added Erlam.
At 10.25am, the JSE all share had lost 0.65% to 65,880 points and the top 40 was down 0.7%. Banks had gained 0.89% and financials 0.15%. Resources had lost 1.61%, industrial metals 1.64%, precious metals 1.16% and industrials 0.46%
At the same time in Europe, London’s FTSE 100 had lost 1.24%, France’s CAC 40 0.94% and Germany’s DAX 0.95%.
Earlier in Asia, the Shanghai Composite was up 1.82%, while Hong Kong’s Hang Seng jumped 5.81%. Japan’s Nikkei weakened 0.55%.
Meanwhile, the rand traded at its strongest level in almost two weeks on Tuesday, firming along with emerging-market currencies
At 10.34am, the rand had weakened 0.44% to R17.7250/$ and 0.15% to R17.6162/€, while it had strengthened 0.11% to R20.2237/£. The euro was 0.47% weaker at $0.9935.
Gold lost 0.72% to $1,713.09/oz and platinum 0.86% to $921/oz. Brent crude oil was 0.11% firmer at $91.62 a barrel.
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