US rates outlook rattles global stocks

SOUTH African stocks fell for a second session running on Thursday, tracking global bourses that stumbled as investors braced for US interest rates to rise more quickly than previously expected.

But losses were capped by mining stocks such as platinum producer Aquarius Platinum, which added almost 2% to R7.15, helped by the weakening rand.

“We have seen a lot of weak figures coming out of China, which is bad for commodities, but the weaker rand is helping our mining companies today,” said Abri du Plessis, chief investment officer of Gryphon Asset Management.

The Top 40 index slid 0.29% to 41 885.37, while the wider All Share index eased 0.34% to 46 509.27.

Worries about the outlook in China hit iron-ore producer Assore, which fell 4.4% to R380.01. The world’s second-largest economy is a major consumer of this steel-making ingredient.

The JSE was closed on Friday for the Human Rights Day public holiday.

European shares headed for their biggest weekly gain in a month on Friday, supported by a rally in basic resources stocks and some positive technical buying signals.

Stronger miners, the biggest sectoral gainers, helped the FTSEurofirst 300 to edge up 0.3% to 1 309.39 points after moving in and out of negative territory. The index gained almost 2% this week.

“The market is consolidating at a very high level before we push sharply higher. We need a catalyst and that might come from the European Central Bank in the form of fresh policy initiatives,” said Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets.

Stock markets across Europe were broadly positive with Britain’s FTSE 100 index rising 0.4%, Germany’s DAX advancing 0.7% and the eurozone’s blue chip Euro STOXX 50 index gaining 0.6%.

Friday’s gains came despite tension over Crimea, with European shares proving more resilient to anxiety over the region than in the previous weeks.

Wall Street’s upward momentum continued, with major indexes largely rising. Both the Dow and S&P 500 were on track for their fourth day of gains in five days, and all three major indices were set to close out a week of strong gains.

The Dow Jones industrial average was up 0.67% at 16 441.16. The Standard & Poor’s 500 index was up 0.49% at 1 881.24, and the Nasdaq Composite index was down 0.08% at 4 315.95.

Brent crude rose more than 1% to above $107 a barrel as US sanctions against Russia, the world’s second-largest oil exporter, heightened fear of supply disruption.

Spot gold was up 0.6% to $1 336.40/oz. Palladium rose 4.5% to $797.00/oz, while silver rose 0.6% to $20.35/oz and platinum gained 0.4% to $1 432.25/oz. —