MARKET WRAP: JSE falls as treasuries cause uncertainty
Higher treasury yields in the US indicate a drop in safe-haven trade as confidence in a strong US economy reaches new heights
The JSE closed weaker on Friday, ending a disappointing week, as uncertainly grips global markets amid spiking US bond yields. The US 10-year treasury yield rose to a seven-year high of 3.2344% during the week. This indicated a drop in safe-haven demand from the market, with investors showing confidence in the strong US economy, and investors of the view that further interest-rate hikes can be absorbed. However, this is likely to strengthen the dollar, placing developed equity markets on the back foot. The all share closed 1.13% lower at 54,409.50 points on Friday and the top 40 dropped 1.33%. Resources shed 1.99%, banks 1.43%, industrials 0.97%, general retailers 0.8% and property 0.62%. The all share ended the week 2.33% lower, bringing losses over the past fortnight to nearly 5%. On Friday, Naspers lost 1.16% to R2,889.99 and Standard Bank 1.68% to R163.21. Next week will be another quiet one on the economic calendar, with August’s manufacturing and mining numbers on Thursday the...
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