JSE closes weaker as miners retreat on surprise Chinese rate increase
Chinese authorities increase short-term rates, indicating they are serious about curbing capital outflows, and the JSE ends the week down across the board
The JSE closed weaker on Friday as miners retreated on a surprise step by the Chinese authorities to increase short-term interest rates. This tightening could harm GDP growth in China, but was an indication that the Chinese authorities were serious about curbing capital outflows from the country, although the increases were modest, analysts said. Mining stocks have been supported by expected strong growth in China. The platinum price has risen 10% this year and copper 6%. Platinum stocks were particularly hard hit, with gold also weaker despite positive announcements from Sibanye and Gold Fields on the day. The gold price was flat at $1,216 an ounce at the JSE’s close with platinum losing having lost 0.17% to $994 an ounce. The Chinese move coincided with the release of non-farm payroll data in the US, which indicated another 227,000 seasonally adjusted jobs were created in the US in January, exceeding expectations of 175,000. It was the largest gain since September. However, the jo...
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