JSE set for a bad end to the week after ECB buzzkill
In response to growth concerns, Europe’s central bank delayed rate hikes and launched a new stimulus package aimed at helping banks lend more
The JSE is set to open in the red on Friday after the European Central Bank’s (ECB) move to boost the eurozone spooked investors about the state of the global economy. A more dovish ECB on Thursday delayed rate hikes and launched a new stimulus package aimed at helping banks lend more. The move, partly based on Europe’s dimmer growth and inflation prospects, prompted emerging-market currencies, including the rand, to fall relative to the dollar, said GT247.com trader Musa Makoni. The ECB’s dovish tone had “set the stage for a global equity sell-off”, Makoni said. The S&P 500 index closed 0.8% down overnight, while in Asia, the Hang Seng index was 1.5% down at the lunch break on Friday. Japan’s Nikkei 225 index was 2.1% lower in early afternoon trade. Tencent, the flagship asset of JSE-heavyweight Naspers, was 2.3% down in Hong Kong, setting Africa’s largest public company up for a negative end to the week. JSE-listed BHP Group was 1.4% lower in Australia. Financial services group MM...
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