MARKET WRAP: JSE ends lower as oil falls on production recovery reports

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Statistics SA is set to release the CPI for August with the the consensus being for it to have accelerated to 4.2% from 4% in July

The JSE closed in negative territory on Tuesday as investors remained cautious ahead of the US Federal Reserve’s decision on interest rates.

The price of Brent crude dropped more than 5% in intra-day trade on Tuesday, after shooting up 13.1% on Monday, as markets assessed the effect the attack will have on global oil supply and, consequently, inflation.Senior market analyst at Oanda, Craig Erlam, said expectations that the Fed will cut by as much as 50 basis points have diminished with markets now pricing in at least a 30% chance the Fed will keep rates unchanged.

Shortly after the JSE closed, the Dow was flat at 27,051.28 points. In Europe, the FTSE 100 was down 0.26% and Germany’s DAX 30 0.12%, while France’s CAC 40 was up 0.15%. Earlier, the Shanghai Composite fell 1.74% and Hong Kong’s Hang Seng 1.23%, while Japan’s Nikkei 225 was flat. The JSE all share fell 1.66% to 56,895.20 points and the top 40 1.79%. Banks dropped 3.41%, while gold miners climbed 3.11%.

 

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