JSE opens weaker in cautious trade
US Federal Reserve is expected to hike rates later in the day and a dovish forward view is likely to keep the dollar on the back foot
The JSE all share opened lower on Wednesday morning as investors stood on the sidelines ahead of the expected hike in interest rates by the US Federal Reserve later in the day. Traders on the JSE were reluctant to take significant positions at the opening, with volumes not exceeding R1bn 45 minutes after the opening. The market has priced in a 100% likelihood of a US hike, but would probably take a more cautious look for the rest of the year and 2019 as the impact of the trade war between the US and China is still uncertain. Higher oil prices have created new worries, as higher energy prices usually have inflationary consequences. This could come at an inopportune time, with US GDP growth steaming ahead and as the Fed tightens monetary policy. Brent crude rose above $82 a barrel soon after the opening of the market. The rand was marginally firmer at R14.2912 to the dollar from R14.3506. The Dow closed 0.26% lower on Tuesday in choppy trade as the market shrugged off renewed upbeat c...
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