JSE faces Asian market pressure on Thursday as economic warning lights flash

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Chinese tech giant Tencent reported a halving of quarterly profit on Wednesday, while a number of US firms also released troubling results

The JSE looks set to contend with significant pressure on Asian markets on Thursday morning, with investors digesting earnings reports that point to a deteriorating global economy.

The tech-heavy Nasdaq lost 4.7% on Wednesday and the S&P 500 4%, losses similar to those seen in early 2020 when much of the world was reacting to the emergence of Covid-19. Naspers and Prosus had lost almost 5% on Wednesday, and Tencent’s results had been released before the JSE close. Gold was flat at $1,815.64/oz, while platinum had fallen 0.64% to $928.50. Brent crude was up 1.27% to $110.58 a barrel.Domestic focus on Thursday is squarely on the Reserve Bank policy announcement later, amid expectations that a 50-basis-point hike may be on its way. SA’s inflation for April had remained steady at 5.9% year on year, towards the top end of the Bank’s target range.

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