JSE set for weak start on Monday as Asian stocks slide on US jobs data

  • 📰 BDliveSA
  • ⏱ Reading Time:
  • 64 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 29%
  • Publisher: 63%

Business News News

Markets will closely monitor Federal Reserve chair Jerome Powell’s testimony to the Congress on Wednesday and Thursday amid renewed attacks on him

An electronic board displays the Tokyo stock index at a securities office in Tokyo, Japan. Picture: EPA/KIMIMASA MAYAMA

The JSE could open lower on Monday, with Asian equities falling sharply in the wake of better-than-expected US jobs data, which has reduced the likelihood of sharp interest rate cuts from the Federal Reserve. The US economy added 224,000 jobs in June, data released on Friday shows. That “does not justify a rate cut in normal circumstances” and is likely to make the Fed’s interest rate deliberations more difficult, analysts at OCBC Bank in Singapore said on Monday.

The data reading is probably not enough on its own to rule out a pre-emptive policy decision, but it could temper expectations of an aggressive rate cut later in July, the bank said.Meanwhile, Morgan Stanley is reducing its exposure to global equities due to eHong Kong’s Hang Seng index was 1.6% down on Monday, while the Shanghai Composite slipped 2.5%. Japan’s Nikkei 225 fell 1%, Korea’s Kospi 1.7%, and Australia’s main benchmark 1%.

Chinese internet and gaming giant Tencent dropped 1.8% in Hong Kong, suggesting a weak opening for major shareholder and JSE-behemoth Naspers.No major company results or data releases are expected locally on Monday. Elsewhere, iThe rand, which came under pressure due to the US jobs reading, remained on the back foot on Monday morning.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Transport conference to discuss development of roads: Mbalula - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.Transport Minister Fikile Mbalula says the Southern African Transport Conference, which is expected to take place in Pretoria on Monday, will discuss among other things the development of roads. I don't think we even need a conference for that. We already know what is needed,let us just implement. Stop unnecessarily spend money where is not needed most This is what I like about MbalulaFikile he doesn't waist time. He is hard at work & initiating new ideas...👌 keep up the good work Grootman Ahhh. Yet another conference. Be still my beating heart
Source: SABC News Online - 🏆 32. / 51 Read more »