MARKET WRAP: Banks lead JSE lower as markets await decision on Brexit extension

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The rand closed flat against the dollar, but had strengthened slightly against the euro and the pound

The JSE was lower on Thursday with banks leading losses, while global markets await the EU’s decision amid speculation that the it may give its verdict on a Brexit extension by Friday.

The European Central Bank opted to keep the deposit facility rate unchanged at -0.5% on Thursday, in line with market expectations. This marked ECB president Mario Draghi’s final policy announcement before handing over the reins to former International Monetary Fund head Christine Lagarde. Gold was up 0.7% to $1,502.19/oz, breaking through $1,500 for the first time in almost two weeks, and platinum added 0.51% to $925.06. Brent crude gained 0.61% to $61.41 a barrel.

The JSE all share fell 0.17% to 55,478.50 points and the top 40 0.24%. Banks fell 1.4% while gold miners gained 2.28%. Clicks rose 0.24% to R239.58. The retailer said on Thursday that its group turnover increased 7.2% in the year to end-August.

 

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