JSE faces weaker Asian markets on Thursday ahead of Opec meeting

The JSE faces mostly weaker Asian markets on Thursday morning, with sentiment dented by inflation concerns, while all eyes are on a meeting of oil cartel Opec later.

Markets had already been jittery after a US Federal Reserve official suggested earlier in the week the central bank may not pause its rate hiking cycle later in the year.

Sentiment then came under further pressure on Wednesday, after US treasury secretary Janet Yellen conceded she had erred on the threat posed by rising inflation.

The local bourse lost 1.73% on Wednesday, snapping a four-session winning streak, but some good news has come in the form of easing oil prices.

Brent crude lost 4.5% on Tuesday and extended its loss on Wednesday, falling another 1%. In early trade on Thursday, Brent crude was down 0.75% to $114.10 a barrel.

Reports have suggested that major Gulf producers are willing to significantly increase production to offset any decrease from Russia, which is facing the prospect of the EU agreeing to ban imports of most Russian oil by the end of the year.

Some Opec members are exploring the idea of suspending Russia’s participation in an oil-production deal, the Wall Street Journal has reported, and all eyes are on a meeting of the cartel later on Thursday.

In morning trade the Shanghai Composite edged up 0.11%, but the Hang Seng fell 1.84% and Australia’s All Ordinaries index 1.04%.

Tencent, the Chinese tech giant important to the JSE via the Naspers stable, lost 1.05%.

Gold was flat at $1,845.10/oz while platinum lost 0.6% to $989.

The rand was 0.15% weaker at R15.59/$.

The local corporate and economic calendars are bare on Thursday.

gernetzkyk@businesslive.co.za