JSE weakens after long weekend, as oil climbs above $81 a barrel
Banks and retailers feel the pinch of a higher oil price, with miners under some pressure from global trade friction and a stronger dollar
The JSE was weaker on Tuesday morning, under pressure from a rising oil price and global trade tension, with local banks faring worst.
Domestic markets were closed on Monday, when risk-off sentiment was buffeted by some escalation in tension between the US and China over trade. Local stocks are also reacting to oil's climb above $80 a barrel.
On Monday, China released a lengthy position paper on US-China trade issues, accusing the administration of US President Donald Trump of being a "trade bully", reported Dow Jones Newswires. China has also rejected new talks with the US, which is currently pressing ahead with free trade deals with other nations in Asia, including South Korea.
Oil cartel Opec's recent rejection of Trump's calls to keep a lid on oil prices has also sent the price of Brent crude higher. On Tuesday morning, oil was at $81.60 a barrel — a four-year high.
This helped some miners, such as Sasol, but most other commodity producers were feeling the pinch of trade tension and a stronger dollar.
A US Federal Reserve meeting this week is also expected to keep a lid on activity, as the market attempts to gauge the next move from the world's most influential central bank.
At 9.40am the JSE was down 0.68% at 56,774.1 points and the top 40 was 0.9% lower. Resources had lost 0.54%, banks 1.29% and industrials 1.26%.
Sasol had risen 2.43% to R552.
Rand hedge British American Tobacco was off 2.68% at R657.39, AB InBev 1.77% to R1,301 and Richemont 1.32% to R119.20.
Nedbank had fallen 2.73% to R264.80.
Alexander Forbes jumped 8.04% to R5.24, after saying earlier it had fired group CEO Andrew Darfoor with immediate effect.
Mr Price was 1.8% lower at R224.06 and Woolworths 1.6% at R50.41.
Naspers had fallen 2.26% to R3,174.77.
At the same time European stocks were muted, with the FTSE 100 up 0.18% and the CAC 40 0.04%, while the DAX 30 was 0.09% lower.
At the same time, platinum was up 0.13% at $828.34 an ounce and gold 0.12% at $1,199.99.