The pressure on the JSE expected to continue today
By, editor– Sunburst Africa
Johannesburg—Sunburst Africa— Stocks on the JSE closed in the negatve territory yesterday after trading in the red all day. The all share index closed 2,08 percent in the negative territory. Top lossers on the market included Sasol, InvPLC, Assore, Naspers, and Imperial. Yesterday, the spot price of Brent crude fell to lows of $65 a barrel, a fresh five-year low, before bouncing back slightly in the early afternoon session. Resources, which remain in bear-market territory, fell 1.94% and platinum stocks slid 2.05%. Leading European share markets were lower at midday, with UK’s FTSE 100 giving up 1.05%.
Investors will continue to be cautious as the markets open to trade on the JSE this morning. Though South Africa expect a number of data to be published by stats SA this morning. There will be no significant momentum on the markets as investors remain cautions as they continue to watch oil prices.
In early morning trade this morning, Asian stocks fell with the regional index heading for its biggest two-day drop in a month, as oil erased yesterday’s gains and global currencies swung by the most in more than a year. Chinese stocks fluctuated as inflation data missed estimates, underscoring growth concerns.
The MSCI Asia Pacific Index slid 1.2 percent by 12:10 p.m. in Tokyo, set for its lowest close since Oct. 24 as Japan’s Topix gauge slid 1.5 percent. The Hang Seng China Enterprises Index (HSCEI) was little changed after tumbling 4.6 percent yesterday. Chinese producer prices fell 2.7 percent in November from a year before, a 33rd straight decrease, while consumer inflation slowed to 1.4 percent, the slowest since 2009, reports today showed. A move to tighten short-term lending rules in China sparked a rout in global equities yesterday, fanning concern over the outlook for Asia’s largest economy. There are prospect of an election in Greece. This has fueled speculation that opponents of the European Union’s bailout terms may gain more power.
With all these global events unfolding, one should expect the JSE to continue to trade cautiously this morning. This is compounded with domestic power cut problems that are already impacting negatively on the markets.
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