MARKET WRAP: Turkish downgrade and Deutsche Bank worries push the JSE lower
THE JSE closed weaker on Monday after rating agency Moody’s downgraded Turkey’s sovereign rating to junk and concern about the Deutsche Bank’s solvency affected European markets.Moody’s lowered Turkey’s sovereign rating one level to Ba1, its highest noninvestment grade, saying lower economic growth and higher debt were identified as risks for the Middle-Eastern country.Deutsche Bank’s share price hit a record low after the German government ruled out any support for the bank in its $14bn subprime mortgage dispute with the US.Earlier, market concern focused on uncertainty about future global interest rates after the US Federal Reserve and Bank of Japan kept rates on hold last week. But this concern abated later with the forward market pricing in a chance of only 19% for a rate hike by the Fed in December.The JSE all share closed 1% weaker at 51,479.80 and the blue-chip top 40 lost 1.05%. The gold index shed 2.01% and banks 1.66%. General retailers closed 1.23% off, resources were dow...
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