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Johannesburg - The JSE extended losses at noon on Friday amid cautions ahead of the release of key US nonfarm payrolls data, with resources counters putting the overall local market under pressure.
"Commodities are falling through the floor, dragging down resources stocks," a trader said, adding that the strong dollar added to the negative undertone. Metal prices have slipped from recent high levels, owing largely to the firming greenback.
By 12:01 local time, the JSE all share index was 0.89% lower, with gold miners falling 1.96%, resources shedding 1.48% and platinum miners down 0.97%. Industrials lost 0.42%, banks were 0.90% weaker and so were financials, which slipped 0.68%.
The rand was trading at 6.82 to the dollar from 6.72 at the JSE's close on Wednesday. Gold was quoted at US$1 359.06 a troy ounce from US$1 368.94/oz at the JSE's previous close, while platinum was at $1 719.50/oz from $1 713.50/oz before.
"I would be cautious until I see what this afternoon brings," the trader said, referring to the US nonfarm payrolls. "The market will get direction this afternoon."
Dow Jones Newswires reports that European stocks opened lower on Friday, dragged down by weakness in the oil and gas and basic resources sectors as both crude and metals prices slipped from recent highs. There is also a degree of nervousness ahead of the key US employment release.
Weaker metals prices - spot gold has dropped more than $12 from the levels seen late in New York to $1 358.65 per troy ounce - and oil prices dropping below $90 a barrel - the Nymex February crude oil futures contract traded last at $88.82 per barrel - have resulted in losses in these sectors.
In London, the FTSE 100 was down 0.58%.
Asian stock markets were mixed on Friday, with weakness in the resources sector and caution ahead of US nonfarm payrolls data later in the day weighing on some markets.
Japan's Nikkei Stock Average was up 0.11%, but Hong Kong's Hang Seng Index fell 0.42%.
