The JSE dropped off sharply in the morning session following the release of the UK inflation numbers, which rose in September to a 40 year high of 10,1%, just exceeding a consensus forecast among economists polled by Reuters. European markets fell, with the FTSE closing at -0.17 % and the DAX down by 0.19 %. The European STOXX went against the trend and closed at 0.32 %.
At 10, statistics from Statistics South Africa showed that the country’s headline consumer inflation slowed for a second month in a row in September, to 7.5% year on year from 7.6% in August, causing the JSE to move upwards somewhat after the initial drop. However, the All Share Index finally closed 1.05% down at 65 652.50 points.
Wall Street’s S&P 500 index and Dow Jones opened up negatively and were down 0.75% and 0.31% respectively in the US morning hours, in spite of companies, such as Netflix, Nasdaq, Procter & Gamble and United Airlines showing better than expected third quarter earnings.
In the currency markets, the rand strengthened to 18.23 versus the US dollar, up by 1.39 percent. Oil and Gold also traded in the green against the rand in the afternoon.
In South African company news, mobile operator Telkom announced that bigger rival MTN Group had terminated talks to buy the former in what would have created the country’s biggest telecoms company, according to Reuters, causing the share to drop by 22.65%. MTN stated that the companies were unable to reach agreement on a deal.
