Money SA economy
The JSE opened in the red on Friday as a firmer US dollar put pressure on commodity prices, amid a hike in the US discount rate.
At 9.22am the JSE all share index was 1.14% lower, with resources down 1.84%, gold mining shares lost 2.71% and platinum miners fell 1.56%. Banks and financials declined 0.89% and 0.75% respectively, while industrials lost 0.57%.
Gold was quoted at $1 101.43/oz from $1 117.57/oz at the JSE's last close, and platinum was at $1 508.50/oz, from US$1,529.50/oz at the bourse's previous close.
A local trader said: "The US hiked up its discount rate which led to dollar strength. That has put commodity stocks under pressure this morning, leading the local bourse lower."
Dow Jones Newswires reports that in Asia early on Friday the dollar rose to a five-week high against the yen and a fresh nine-month high against the euro after the US Federal
Reserve raised its discount rate in a fresh sign that the Fed believes financial markets are gradually getting back to normal.
The Fed hiked the rate it charges banks for emergency loans by 25 basis points to 0.75%, fuelling expectations for further rises in long-term interest rates, to the benefit of the US unit, dealers said.
European stocks are expected to open lower Friday on news of the discount rate hike. Ben Potter at IG Markets says this has the potential to erode the bulk of Thursday's gains on Wall Street, and there will be a knock-on effect across all major European markets.
In Asia, regional stocks mostly were mostly lower as a result of the Fed's decision in the US.
