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The JSE closed lower on Thursday, as the Dow Jones hit a record high after the testimony of US Federal Reserve Chairman Jerome Powell exacerbated expectations that the central bank could soon relax its monetary policy .
At the close of the JSE, the Dow Jones gained 0.68% to 27,041.96 points. US markets pushed higher as investors continued to bet on a rate cut at the next Fed meeting in July. Markets have now pretty much taken into account the possibility of a 25 basis point discount. Powell pointed out that the evolution of the trade war between the United States and China, the concern over global growth and low inflation were factors likely to affect US monetary policy.
In Europe, the FTSE 100 fell by 0.25%, the French CAC 40 by 0.31% and the German DAX 30 by 0.45%. Previously, in Asia, the Shanghai Composite hardly changed, while the Hong Kong Hang Seng gained 0.81% and the Nikkei in Japan 0.51%.
Powell's dovish tone pushed the rand below R14 / $, its best level for five months on Thursday, at R13.8573 / $. Shortly after the closure of the JSE, however, the rand was strengthened by 0.41% to R $ 13.9274 / $ and by 0.33% to R $ 15.6831 / €, while It was stable at 17.4756 R £ / £. The euro has changed little at $ 1,1261.
The benchmark 10-year government bond was stronger, with its yield falling eight basis points to 8.025%. Bond yields move inversely relative to bond prices. It was previously less than 8% for the first time since April 2018.
Gold was down 0.5% to $ 1,111.70 / ounce and platinum by 0.12% to $ 825.80. Brent was up 0.5% to 66.98 dollars a barrel.
The share of JSE fell by 0.56% to 57,273.10 points and the top 40 by 0.59%. Gold mines lost 1.67% and resources 1.54%, while retailers in general gained 2.61%.
Gold Fields lost 3.43% to R74.41, Harmony 1.9% to 33.15, AngloGold Ashanti 0.86% to 253.59 and Sibanye-Stillwater 0.65% to 16.70.
Sasol fell 3.29% to R325.34.
EOH fell 8.4% to R22.24.
Blue Label Telecoms, the largest investor in Cell C, fell 9.74% to hit 3.52 rand – its lowest level in 11 years – after the Bowmans law firm to investigate some of its business units, which could be involved in "irregular" practices.
Among the retailers, Mr. Price gained 2.01% to 197 rand, Truworths 1.94% to 67.70 rand and TFG 1.56% to 183.06 rand.
Sygnia fell from 0.11% to 9.39 rand. The financial services company said earlier that the Mazars global firm would become its auditor with immediate effect.
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