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Johannesburg - The JSE was on the back foot on Thursday morning as world markets were again in risk-off mode due to concern that the US Federal Reserve could reduce monetary stimulus sooner than expected.
The Fed is expected to provide more clarity on the pace of asset purchases after next week’s Federal Open Market Committee (FOMC) meeting.
At 09:11‚ the JSE All Share index was down 1.66% at 39‚108.29 points and the top 40 index 1.8% lower.
Miners remained under pressure‚ with platinum and gold counters the main losers‚ shedding 2.8% and 2.69% respectively.
Mining counters have been under pressure for quite a while due to concern that growth in China is slowing‚ which would lead to lower demand for SA’s resources.
Further afield‚ Japan’s Nikkei average tumbled more than 6% on Thursday‚ falling into bear territory amid signs of slowing global growth and a possible winding down of monetary stimulus in the US‚ Dow Jones Newswires reported.
The Nikkei ended 6.35% weaker at 12‚445.38 points.
Rand Merchant Bank noted the continued falls on global markets.
“Emerging markets are taking this particularly hard‚” RMB said in its morning note.
“This sell-off has not translated into foreigners selling out of the JSE yet. They have been small net buyers over the past few days and for the month-to-date‚ after having been large purchasers in May‚” the bank said.
“At the heart of the story remains US data and US Federal Reserve (Fed) policy. Event risk will come from today’s release of the US May retail sales figures‚ the first major data release since last week’s payrolls numbers. The market expects a solid rise in sales‚” RMB said.
“Local news is mildly encouraging. Labour tension appears to have eased after Eskom signed a ‘partnership agreement’ with unions at its new power station projects and as Lonmin reports it is confident a strike will be avoided at its platinum operations.
“There are no significant data releases scheduled for release today‚” the bank said.
On the JSE‚ Anglo American fell 1.29% to R213.52 and Exxaro shed 2.36% to R142.56.
AngloGold Ashanti slid 3.21% to R161.65 and Gold Fields declined 2.81% to R58.20.
Impala Platinum dropped 3.66% to R93.60 and Anglo American Platinum lost 2.74% to R306.38.
Retailers continued to fall after disappointing local April retail sales numbers on Wednesday.
Woolies shed 3.19% to R59.69 after dropping 2.67% on Wednesday. Steinhoff retreated 2.64% to R23.27.
The Fed is expected to provide more clarity on the pace of asset purchases after next week’s Federal Open Market Committee (FOMC) meeting.
At 09:11‚ the JSE All Share index was down 1.66% at 39‚108.29 points and the top 40 index 1.8% lower.
Miners remained under pressure‚ with platinum and gold counters the main losers‚ shedding 2.8% and 2.69% respectively.
Mining counters have been under pressure for quite a while due to concern that growth in China is slowing‚ which would lead to lower demand for SA’s resources.
Further afield‚ Japan’s Nikkei average tumbled more than 6% on Thursday‚ falling into bear territory amid signs of slowing global growth and a possible winding down of monetary stimulus in the US‚ Dow Jones Newswires reported.
The Nikkei ended 6.35% weaker at 12‚445.38 points.
Rand Merchant Bank noted the continued falls on global markets.
“Emerging markets are taking this particularly hard‚” RMB said in its morning note.
“This sell-off has not translated into foreigners selling out of the JSE yet. They have been small net buyers over the past few days and for the month-to-date‚ after having been large purchasers in May‚” the bank said.
“At the heart of the story remains US data and US Federal Reserve (Fed) policy. Event risk will come from today’s release of the US May retail sales figures‚ the first major data release since last week’s payrolls numbers. The market expects a solid rise in sales‚” RMB said.
“Local news is mildly encouraging. Labour tension appears to have eased after Eskom signed a ‘partnership agreement’ with unions at its new power station projects and as Lonmin reports it is confident a strike will be avoided at its platinum operations.
“There are no significant data releases scheduled for release today‚” the bank said.
On the JSE‚ Anglo American fell 1.29% to R213.52 and Exxaro shed 2.36% to R142.56.
AngloGold Ashanti slid 3.21% to R161.65 and Gold Fields declined 2.81% to R58.20.
Impala Platinum dropped 3.66% to R93.60 and Anglo American Platinum lost 2.74% to R306.38.
Retailers continued to fall after disappointing local April retail sales numbers on Wednesday.
Woolies shed 3.19% to R59.69 after dropping 2.67% on Wednesday. Steinhoff retreated 2.64% to R23.27.
