JSE opens lower as expectations of Fed rate cut ebb
The clash between President Cyril Ramaphosa and public protector Busisiwe Mkhwebane is also weighing on sentiment
The JSE opened lower on Monday morning as investors dialed back expectations that the US Federal Reserve will aggressively cut the interest rate at its meeting at the end of July.
Last week, New York Federal Reserve CEO John Williams refuted assumptions that he had hinted at the possibility that the Fed may ease monetary policy, dampening market expectations of a 50 basis-points cut.
“The sharp correction in Fed expectations hint that investors now question whether they have gone ahead of themselves regarding the ‘preventive’ easing measures that the Fed is preparing to take,” London Capital Group senior market analyst Ipek Ozkardeskaya said in a note.
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Earlier, the Shanghai Composite had fallen 1.27% and Hong Kong's Hang Seng 1.44% as pro-democracy protests in the latter intensified. Japan's Nikkei 225 had gained 2%.
Locally, the ongoing clash between President Cyril Ramaphosa and public protector Busisiwe Mkhwebane continues to weigh on sentiment.
At 10.15am, the JSE all had fallen 0.37% to 58,030.30 points and the top 40 was 0.44% down. Banks and financials were down 1.41% and 1%, respectively.
Anglo American earlier gained 0.53% to R390.88. The company declared an interim dividend of R11 per share for the six months ended June.
No major economic data is due on Monday. Statistics SA is scheduled to release inflation figures for June on Wednesday.