The JSE opened weaker on Wednesday on a slew of negative local news and as global markets were spooked by hawkish comments from the new Fed chief in a congressional hearing. Recently appointed US Federal Reserve chairman Jerome Powell indicated that interest rates could rise more than the expected three times this year, if it was warranted by an upbeat economy. Economic data in the US has surprised to the upside recently, with the effect of the recent tax reforms an added bonus. Locally, news that the National Assembly set in motion a process to amend the Constitution to allow for the expropriation of land without compensation, was not good for sentiment, causing the rand to weaken. Eskom has had its credit rating cut by S&P Global Ratings into the first tier of the C-band, lowering its junk status from "highly speculative" to "substantial risks". Eskom remained at risk of facing a distressed exchange situation or default in the next six months, despite securing R30bn in short-term ...
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