The JSE was weaker on Wednesday morning, along with its global peers as investors awaited the US consumer inflation report due later.
According to TreasuryOne currency strategist Andre Cilliers, estimates are for US consumer price inflation (CPI) to have risen to 3.6% from 3.2% year on year, but for Core CPI to have moderated to 4.3% from the previous 4.7%.
Even though inflation is off its highest levels, there are rising concerns about effect the surge in the oil price will have on inflation, causing rates to stay higher for longer.
As of this week, market participants are expecting the US Federal Reserve to keep interest rates unchanged when the Federal Open Market Committee (FOMC) meets next week; however, there are chances that the Fed might raise at the November meeting.
“Traders are on guard ahead of the closely watched US inflation reading, due out later today,” Citadel Global director Bianca Botes said.
At 10.25am, the JSE all share had lost 1.55% to 72,938.62 points and the top 40 was down 1.64%. Banks had fallen 2.89%, financials 2.67%, retailers 1.73%, resources 1.21%, SA listed property 1.18%, industrials 1.14% and precious metals 0.66%.
In Europe, France’s CAC 40 was down 0.72% and Germany’s DAX 0.82%.
In Asia, the Shanghai Composite lost 0.45%, Hong Kong’s Hang Seng 0.15% and Japan’s Nikkei 0.21%.
At 10.21am, the rand was little changed at R18.9155/$, while it had strengthened 0.16% to R20.3138/€ and 0.13% to R23.5882/£. The euro was 0.16% weaker at $1.0739.
Gold was little changed at $1,911.91/oz, while platinum lost 0.38% to $905.08/oz. Brent crude was 0.69% firmer at $92.53 a barrel.
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