Picture: AFP/JOHANNES EISELE
Picture: AFP/JOHANNES EISELE

Further signs that the global economy is losing momentum weighed on the JSE on Wednesday morning, with the local bourse slipping back below 55,000 points amid broad-based losses.

Chinese industrial output growth in July missed market expectations, rising only 4.8% year on year, compared with the market’s target of 5.8% growth. This is the lowest growth since 2002.

Well, if this isn’t a wake-up call to the People’s Bank of China, I’m not sure what is,” said Vanguard Markets managing partner Stephen Innes in a note. “But in the meantime, the wobbly data should send the market bears back on the prowl.”

German data was also subdued, showing that the EU’s largest economy contracted 0.1% in the second quarter of 2019, although this number was expected.

Locally, the rand has come off its worst levels of the week, trading 0.3% weaker at R15.1792/$ at 9.40am.

The all share had fallen 0.89% to 54,700.9 points and the top 40 had lost 0.85%. Banks were down 1.82%, food and drug retailers 1.28%, and general retailers 1.1%. Gold miners recovered 1.14%, having slumped 8.98% on Tuesday.

Gold was flat at $1,500.26/oz while platinum had lost 0.61% to $849.75. Brent crude was 0.18% softer at $60.80 a barrel.

Diversified miner Anglo American was down 3.32% to R328.48.

Sasol fell 2% to R328.48.

Kumba Iron Ore fell 6.76% to R423.03.

Standard Bank gave up 2.16% to R166.65, an eight-month low.

Car component manufacturer Metair was unchanged at R22.46, having said earlier that revenue rose 19% in the six months to end June, with the company upping its dividend 25% to 100c.

gernetzkyk@businesslive.co.za