JSE faces market pressure on Tuesday as investors eye Fed moves

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Wall Street posts sharp losses overnight amid concerns over looming recession and higher interest rates

An employee passes share price information displayed on an electronic ticker board inside the London Stock Exchange Group’s offices in London, the UK. Picture: BLOOMBERG VIA GETTY IMAGES/LUKE MACGREGOR

There was a big hit to risk appetite in a night devoid of any top-tier data, and instead markets are apprehensive ahead of US Fed chair Powell’s Jackson Hole speech on Friday, National Australia Bank economics director Tapas Strickland said in a note. The Dow Jones index and S&P 500 both lost about 2% on Monday, but have been buoyed in recent weeks by hopes that inflation has peaked, even as many major firms have positively surprised in terms of their recent profits.

In morning trade on Tuesday the Shanghai Composite was up 0.18%, while Japan’s Nikkei was down 1.08% and the Hang Seng 0.47%.Gold was up 0.18% to $1,738.44/oz, while platinum fell 0.19% to $875.80. Brent crude was 0.47% higher at $97.11 a barrel.Unemployment numbers for the second quarter are due later, having come in at 34.5% in the first three months of the year.

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