Picture: JSE
Picture: JSE

The JSE weakened on Friday morning with global markets still feeling the effects of the coronavirus outbreak, amid speculation about its ultimate economic impact.

Most Asian share markets fell on Friday and oil price gains stalled, as the growing death toll and economic damage from the coronavirus outbreak snuffed out a rally in most markets earlier this week.

The death toll in mainland China from the new virus has more than doubled in just under a week, reported Reuters.

“The Wuhan coronavirus infections continue to rise in China, along with, sadly, its death toll,” said Oanda senior market analyst Jeffrey Halley. “Chinese authorities are continuing to enact containment measures across the mainland, suggesting that they do not see the light at the tunnel’s end as yet.”

The Shanghai Composite was up 0.33%, but has not yet fully recovered from a 7.72% slump on Monday. On Friday, Hong Kong’s Hang Seng was down 0.33% and Japan’s Nikkei 225 0.19%.

In Europe, the FTSE 100 had lost 0.62% and Germany’s DAX 30 0.29%. The France’s CAC 40 was little changed at 0.2% up.

The JSE all share weakened 0.22% to 57,406.04 points, but has gained 1.46% so far this week, and 0.58% this year. The top 40 lost 0.21%, banks 1.78% and financials 1.12%. Platinum miners were up 1.65% and the gold index 3.26%.

At 11.35am, the rand had lost 0.67% to R15.0101/$, 0.47% to R16.4503/€ and 0.71% to R19.4072/£. The euro weakened 0.18% to $1.0959. 

Gold was little changed at $1,567.14/oz, while platinum had gained 0.36% to $965.96. Brent crude was flat at at $55.30 a barrel.

The coronavirus is likely to remain the dominant theme in the markets on Friday, with little in terms of local economic or corporate releases on the calendar.

Some focus is on US non-farm payrolls numbers for January due later. The figure is widely watched for clues as to future US Federal Reserve monetary policy.

tsobo@businesslive.co.za

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