JSE flattens as risk-on sentiment proves to be fleeting
Profit-taking is evident among banks as the rand remains above R14/$, while retailers are mixed after results from Massmart and Woolworths
After a firm opening, the JSE turned flat on Thursday morning as earlier risk-on sentiment fizzled out on renewed strength in the dollar. After weakening to $1.16 to the euro in overnight trade, the euro was at $1.1563 soon after the JSE’s opening, putting some pressure on the rand. Choppy trade in the rand made it difficult for investors to find direction, with the local currency at first firming to R14.1455 to the dollar, before weakening to R14.40 in later trade. In their latest minutes, US Federal Reserve members expressed concern that trade disputes might affect the US economy. That might lessen the likelihood of further interest-rate hikes in 2018. However, the dollar turned around again as the market priced in further hikes, with at least another two expected until December. The dollar tends to firm on the prospect of higher rates. "Comments from Fed members on the possible slowdown of the US economy in the second quarter of the year, and the risk for trade disputes to hurt b...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.