ISM non-manufacturing producers managers index data beat market forecasts, fuelling concern about US rate hikes
The JSE faces red tickers on Wednesday from Asian markets in part because of US markets closing lower on Tuesday as investors worry about the US Federal Reserve hiking interest rates in the world’s largest economy.
“US equities struggle with the good ISM news amid increasing expectations for a 75 basis points Fed hike later in the month,” National Australia Bank currency strategist Rodrigo Catril said in a note on Wednesday. “A classic case where good news is bad news, as the ISM reveals the services sector of the US economy is in rude health, implying the Fed still has more work to do to bring inflation under control.
Japan’s Nikkei lost 1.12% as it tracked Wall Street. The Shanghai composite in China was flat as investors waited to see how markets would react to Chinese trade data for August. Exports rose 7.1% year on year, well below the 12.8% forecasted. This was driven by weaker demand, domestic disruptions such as the historic drought, and China’s zero-Covid policy.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Gold falls on stronger dollar, bond yieldsUpbeat economic data bolstered expectations that the Fed will continue hiking interest rates aggressively
Read more »
JSE’s Tuesday opening follows mixed Asian marketsShanghai composite in China is up, while Hong Kong’s Hang Seng is down
Read more »
MARKET WRAP: JSE holds up as its European peers reel from energy supply jittersThe local share market is still recovering after a big sell-off last week during which foreign investors offloaded R14.9bn worth of shares on a net basis
Read more »
MARKET WRAP: JSE ends modestly higher after choppy sessionThe rand is under pressure from a stronger US dollar
Read more »