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Johannesburg - The JSE was range-bound but
on the back foot in midday trade on Friday, as investors awaited US
non-farm payroll data.
A local trader said that investors were erring on the side of caution ahead of US non-farm payrolls data, choosing to retreat to gold stocks, which were the single positive performing sector.
By 12:14 local time, the JSE All Share [JSE:J203] index was down 1.18% to 30 721.14 points. Gold shares lifted 1.19%, however platinum counters declined 1.83% and resources gave up 1.40%. Banks were 1.39% lower, financials shed 1.10% and industrials lost 1.03%
The rand was steady at 7.01 to the dollar, from 7.00 at the JSE's close on Thursday. Gold was trading at $1 852.19 a troy ounce from $1 823.65 at the JSE's previous close, while platinum was at $1 859.50/oz, from $1 842.50/oz previously.
Dow Jones Newswires reported earlier that European stocks fell sharply on Friday along with the euro, and peripheral yield spreads widened, as fresh headlines surrounding Greece and the eurozone debt crisis prompted investors to ditch risky assets. At the same time, jitters ahead of the release of US nonfarm payrolls added to the negative mood.
At the time of writing Paris's CAC-40 was 1.9% lower at 3 204.88 and London's FTSE 100 was 1.6% lower at 5 332.21.
Traders said this month's US payrolls report had taken on even more significance than usual, as the outcome could trigger the Federal Reserve's next move with regard to monetary policy. "A below-par nonfarm payrolls figure will cement expectations that the Fed is going to act sooner rather than later," said Markit.
"But the market is not as sure as it was about the efficacy of [quantitative easing], so risky assets could still suffer from a negative surprise. Conversely, a positive surprise could be overlooked as it might delay action from the Fed," it added.
A local trader said that investors were erring on the side of caution ahead of US non-farm payrolls data, choosing to retreat to gold stocks, which were the single positive performing sector.
By 12:14 local time, the JSE All Share [JSE:J203] index was down 1.18% to 30 721.14 points. Gold shares lifted 1.19%, however platinum counters declined 1.83% and resources gave up 1.40%. Banks were 1.39% lower, financials shed 1.10% and industrials lost 1.03%
The rand was steady at 7.01 to the dollar, from 7.00 at the JSE's close on Thursday. Gold was trading at $1 852.19 a troy ounce from $1 823.65 at the JSE's previous close, while platinum was at $1 859.50/oz, from $1 842.50/oz previously.
Dow Jones Newswires reported earlier that European stocks fell sharply on Friday along with the euro, and peripheral yield spreads widened, as fresh headlines surrounding Greece and the eurozone debt crisis prompted investors to ditch risky assets. At the same time, jitters ahead of the release of US nonfarm payrolls added to the negative mood.
At the time of writing Paris's CAC-40 was 1.9% lower at 3 204.88 and London's FTSE 100 was 1.6% lower at 5 332.21.
Traders said this month's US payrolls report had taken on even more significance than usual, as the outcome could trigger the Federal Reserve's next move with regard to monetary policy. "A below-par nonfarm payrolls figure will cement expectations that the Fed is going to act sooner rather than later," said Markit.
"But the market is not as sure as it was about the efficacy of [quantitative easing], so risky assets could still suffer from a negative surprise. Conversely, a positive surprise could be overlooked as it might delay action from the Fed," it added.
