MARKET WRAP: Global risk aversion weakens JSE
As Covid-19 surges globally, and more lockdowns are imposed, safe-haven gold is back in vogue
The JSE tracked weaker global markets on Tuesday as investor risk sentiment took a hit as a number of areas have had to roll back on easing lockdowns as Covid-19 cases surge, while local mining data gave a bit of hope regarding a local economic recovery.
Stats SA data revealed on Tuesday that annual mining production fell 29.8% year on year in May, as SA moved into lockdown level 4 and more operations returned to production. This is an improvement from April’s data that showed a drop of 50.3%, the worst on record since the agency began the series in 1980. A Bloomberg consensus forecast was for a drop of 32.5% in May.