Picture: JSE
Picture: JSE

The JSE was lower on Wednesday morning with global markets mixed ahead of the US Federal Reserve's policy decision, while oil prices have stabilised after Saudi Arabia gave assurances about production.

The US Fed is set to give its verdict on its interest rate on Wednesday with markets partially pricing in the chance of a 25-basis-point rate cut as well a the likelihood that the Fed will keep the rate unchanged.

“While the interest rate probability tools have become a little erratic in recent days, there seems to be little question that the Fed is going to cut interest rates again today,” Oanda senior market analyst Craig Erlam said.

“The real question is whether they will stick to the mid-cycle adjustment message and refuse to explicitly signal more cuts or give up the fight and acknowledge that an easing cycle is under way,” Erlam said.

Oil prices steadied on Wednesday after Saudi Arabia said it would take less than a month to restore oil production lost after a drone attack on its oil facilities at the weekend.

Earlier, the Shanghai Composite added 0.25% while Hong Kong's Hang Seng was down 0.13% and Japan's Nikkei 25 0.18%. 

At 10.50am, the JSE all share was down 0.62% to 56,542.90 points and the top 40 0.8%. Industrials lost 1.58% while banks were up 1.06%.

EOH dropped 2.36% to R12.40 after the company said on Wednesday it expects a headline loss per share of 973c from continuing operations in the year to end-June.

Pan African Resources lost 1.32% to R2.25. The gold miner said on Wednesday that its headline earnings per share grew 20.2% to 1.19 US cents in the year to end-June.

mjoo@businessinesslive.co.za