The JSE was weaker on Monday morning with its global peers as investors continued to assess the latest developments in the Israel-Hamas war in the Middle East.
The prospect of wild price swings continued to dog investors after Friday’s surges in crude oil and gold. According to Bloomberg Economics, a wider war in the Middle East risks tipping the world economy into recession. That has added another concern to investors’ growing list of worries, including about whether the Federal Reserve has finished raising interest rates, reported Bloomberg.
News channels are now reporting that Israel is preparing for a ground offensive into Gaza while there have been clashes with Hezbollah, a Shia Muslim political party and militant group, on the Lebanon border.
“Investors remain wary of further escalation in the Hamas/Israeli conflict,” said TreasuryONE currency strategist Andre Cilliers. “Investors are also closely monitoring the conflict for its potential impacts on oil prices, given the geopolitical risks it poses to oil markets in the Middle East.”
At 10.10am, the JSE all share had lost 0.48% to 72,567.80 points and the top 40 0.61%. Food producers had gained 0.54% and industrial metals and mining 0.24%. Precious metals had lost 1.67%, financials 0.67%, resources 0.58%, banks 0.54%, industrials 0.39% and retailers 0.15%.
In Europe, France’s CAC 40 was down 0.55% and Germany’s DAX 0.53%.
In Asia, the Shanghai Composite lost 0.46%, Hong Kong’s Hang Seng 1.04% and Japan’s Nikkei 2.03%.
At 9.54am, the rand had strengthened 0.43% to R18.9026/$ and 0.21% to R19.9051/€, while it was little changed at R23.0058/£. The euro was 0.26% firmer at $1.0531.
Gold lost 1.03% to $1,912.48/oz, while platinum gained 0.22% to $884.22/oz. Brent crude was 0.84% weaker at $90.14 a barrel.
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