MARKET WRAP: JSE nears four-month highs as volumes dwindle

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Despite a slight decline, the index was close to its strongest levels over four months

The JSE declined for the first time in seven days on Thursday, staying near its strongest levels in four months based on closing prices, asEuropean markets, which earlier in the week hit records amid optimism that the US and China would strike a trade deal, were mixed on Thursday.

The Bank of England on Thursday kept interest rates on hold at 0.75% but indicated it may cut if global economic growth fails to recover or concern about the prospect of a disorderly Brexit persist. The bank’s monetary policy committee voted 7-2 in favour of keeping the official rate on hold. Lower rates would reduce the appeal of holding UK assets.

“The Trump impeachment saga may write some great headlines and put the president in an unenviable group of three that have gone through a similar process, but as far as markets are concerned, it’s nothing more than a sideshow,” said Oanda senior market analyst Craig Erlam. The JSE all share lost 0.36% to 57,558.9 points, after recent gains that pushed it to its best close since the middle of September.

 

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Volumes will dwindle even more when EWC is legal.

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