JSE faces scary Halloween of sinking Fangs
SA’s unemployment rate is unlikely to have improved from June’s 27.2% in September
SA’s high unemployment will in the spotlight on Tuesday, with StatsSA scheduled to release its September quarter labour force survey at 11.30am. “Unemployment readings for the third quarter of 2018 are likely to remain stubbornly high, given the weak economic growth backdrop, with little change expected from the 27.2% unemployment rate outcome of the second quarter,” Investec Bank economist Lara Hodes wrote in her weekly note. A crash of US tech stocks may see the JSE top 40 index’s largest constituent, Naspers, slide further on Tuesday after Monday’s 3.98% drop. Reuters reported on Tuesday morning that the four internet companies grouped under the Fang (Facebook, Amazon, Netflix and Google) acronym lost a combined $200bn on Monday.
The combined market capitalisation of the quartet of Facebook, Amazon, Netflix and Google-parent Alphabet has fallen from a record $2.5-trillion in July to $1.93-trillion ahead of Halloween.