The JSE was weaker on Friday morning, while its global peers were mixed as investors turned cautious amid rising Covid-19 cases in China. US markets will open on Friday after the Thanksgiving holiday on Thursday.
Signs of China’s looming battle with Covid-19 are creeping up in the heart of Beijing. China’s daily Covid-19 cases rose to a record on Thursday, bringing major cities to a standstill as authorities fight to prevent the virus from spreading beyond its control.
“Concerns about the economic dynamism and supply-chain bottlenecks are rising as the daily Covid-19 tally soars in mainland China, as such investors are wary as to what extent the officials will implement the lockdown to curb the outbreak,” said RMB analysts.
The risks of renewed restrictions in China cannot be ignored when evaluating the global economic recovery trajectory, especially when weighing China’s contribution to supply chains, said Citadel Global director Bianca Botes. “Consider the disruptions these types of restrictions can have on not only the local Chinese economy but the global economy as a whole.”
At 10.25am, the JSE all share had lost 0.29% to 72,913 points and the top 40 0.32%. Precious metals had lost 1.75%, resources 0.41%, industrials 0.25%, financials 0.2% and banks 0.12%.
At the same time in Europe, the UK’s FTSE 100 had gained 0.1%, while Germany’s DAX had lost 0.1%. France’s CAC 40 was little changed.
Earlier in Asia, the Shanghai Composite gained 0.4%, while Hong Kong’s Hang Seng lost 0.52% and Japan’s Nikkei 0.35%.
At 10.53am, the rand had weakened to 0.47% to R17.0921/$, 0.62% to R17.8065/€ and 0.39% to R20.6860/£. The euro was 0.1% firmer at $1.0417.
Gold lost 0.23% to $1,751.07/oz, while platinum was little changed at $985.94/oz. Brent crude was 1.13% firmer at $85.97 a barrel.
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