The JSE Securities Exchange South Africa (JSE) is expected to open down on Tuesday on the back of weaker US markets. Traders added that the stronger rand is also expected to push local markets into negative territory.
At 0841 on the financial derivatives division of the JSE, the all share March index future (Alsi) was down 288 points at 8,390 points after 8 contracts had traded, while March industrial index future (Indi) were untraded.
“The spot market is likely to be down on the back of weaker US markets and the strengthening rand will continue to weigh on the market,” a derivatives trader said.
The rand was last trading at 8,7200 to the dollar from its New York close of 8,7225.
The trader added that gold price pulled back some gains overnight. Gold was quoted at $366,30 an ounce from $369,43/oz at the previous close.
Dow Jones Newswires reports that war fears pummeled Wall Street on Monday, pushing the Dow Jones industrials below the 8,000 level for the first time in
three months and sending the overall market lower for the seventh time in eight
sessions.
The Dow Jones industrial average was down 142,68 points to close at 7,988.33 and the Nasdaq index down 16,66 points, closing at 1,325.48 in heavy trading. The broader Standard and Poor’s 500 was down 14,39 points, closing at 847,01.
Tokyo stocks ended moderately lower on Tuesday as Wall Street’s continued slide overnight prompted selling of blue chips such as Sony, Matsushita Electric and Toyota.
The Nikkei 225 Stock Average fell 84,08 points, or 1%, to 8525,39, after a 122,18-point drop on Monday. But the benchmark index managed to stay above the psychologically important 8500 mark throughout the day. – I-Net Bridge