The JSE was weaker on Friday morning, following declines in the US ahead of the country’s pivotal jobs report later in the day.
Positive US economic data from the ADP Research Institute showing that private-sector employment rose by more than expected this week, added to concerns about another aggressive interest-rate hike from the Fed when it meets early in November.
Investors are now awaiting Friday’s US non-farm payrolls report to further assess the resilience of the world’s largest economy and to gauge its central bank’s next move in its fight against persistently high inflation.
“Today’s payrolls and employment data will give markets some clues as to the state of the labour market, with analysts estimating 250k new jobs and a flat 5.4% unemployment rate,” said TreasuryOne currency strategist Andre Cilliers.
Adding that a hot job market is likely to fuel the Fed’s rationale to hike rates further, “while any weakness in the labour market data, or signs of additional slack, could boost the relief rally once more and see equity markets end the week strong”.
At 10.15am, the JSE all share had lost 0.39% to 65,574 points and the top 40 0.38%. Precious metals had gained 0.61% and resources 0.38%. Industrials had lost 0.86%, banks 0.33% and financials 0.26%
At the same time in Europe, London’s FTSE 100 was little changed, while France’s CAC 40 had lost 0.12% and Germany’s DAX 0.26%.
Earlier in Asia, the Shanghai Composite was down 0.55%, Hong Kong’s Hang Seng 1.49% and Japan’s Nikkei 0.71%.
At 10.23am, the rand was little changed at R17.9713/$, while it had weakened 0.29% to R17.6307/€ and 0.42% to R20.1438/£. The euro was 0.19% firmer at $0.981.
Gold lost 0.15% to $1,712.72/oz and platinum 0.99% to $928.66/oz. Brent crude oil was 0.24% weaker at $94.65 a barrel.
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