JSE starts week on negative note
The JSE closed weaker on Monday in global risk-off trade as the Dow opened weaker and European markets closed in the red on international trade-war concerns.
The European automotive sector has been hard hit after President Donald Trump reiterated his threat to impose tariffs on European vehicles, despite opposition from US legislators and domestic and foreign carmakers.
Markets have seesawed in recent months as investors reacted to heightened rhetoric on trade, and the imposition of US tariffs and retaliatory measures from China and Europe, Dow Jones Newswires reported.
At the weekend, finance ministers and central bankers of the G20 group of countries ended their meeting with little progress towards resolving global trade tension.
US Treasury secretary Steven Mnuchin said “it’s definitely a realistic possibility” that Trump would follow through with his threat to impose tariffs on $500bn (R6.7-trillion) of Chinese goods.
The all share ended 0.76% lower at 56,556.8 points and the top 40 lost 0.83%. Industrials shed 1.29%, banks 1.04%, food and drug retailers 0.85% and general retailers 0.55%. The gold index lifted 0.52%. Sasol rose 0.43% to R505. Global luxury goods firm Richemont lost 1.14% to R117.48.
Naspers closed 1.68% lower at R3,390.61 amid renewed criticism after it was disclosed that CEO Bob van Dijk had received a share bonanza of R1.6bn.
Nepi Rockcastle rose 1.47% to R118.02.
The number of contracts traded was 16,408, from Friday’s 20,289.