The JSE was down on Tuesday morning, with global markets also mostly weaker as a rally sparked by an improved US interest-rate outlook seemed to lose steam.
Risky assets received a boost on rising hopes that the US Federal Reserve could be done with its interest-rate hikes to bring inflation under control after softer data showed that the Fed’s aggressive interest rates were indeed working.
Investors started growing optimistic after the Fed left interest rates unchanged following their meeting last week, which also saw US treasury yields slide and stocks climb.
Investors will be watching addresses by Fed chair Jerome Powell, who is scheduled to speak on Wednesday and Thursday. Powell adopted a slightly less hawkish tone at the post-interest rate media briefing last week while maintaining a cautious position on inflation and interest rates. Investors are hoping to hear what the central bank has to say in light of the recent jobs data — which came in softer than expected.
“A pullback and some consolidation were expected somewhat in the markets, given its recent strong rally in recent days,” said TreasuryOne currency strategist Andre Cilliers.
“Markets now await remarks from Fed chair Powell, where the focal point will be on whether the US central bank will maintain its more dovish stance.”
At 10.25am, the JSE all share had lost 0.93% to 72,612.67 points and the top 40 was down 1.01%. Precious metals had lost 2.11%, resources 2.12%, industrial metals 2.01%, banks 0.96%, financials 0.92%, food producers 0.92%, SA listed property 0.52%, retailers 0.36% and industrials 0.26%.
In Europe, France’s CAC 40 was down 0.14% and Germany’s DAX 0.12%.
Earlier in Asia, the Shanghai Composite index was little changed, while Hong Kong’s Hang Seng lost 1.7% and Japan’s Nikkei 1.34%.
At 10.01am, the rand had weakened 0.49% to R18.367/$, 0.28% to R19.6503/€ and 0.21% to R22.6261/£. The euro was 0.19% weaker at $1.0699.
Gold lost 0.47% to $1,968.19/oz and platinum 0.66% to $900.5/oz. Brent crude was 1.55% weaker at $83.78 a barrel.
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