ThinkDaily - JSE Closes Lower as US Economic Weakness Raises Concerns...

The JSE closed weaker amid mixed global markets on Wednesday as investors assessed two publications in the US that pointed to further weakness in the world's biggest economy.
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US payroll processing firm ADP reported that private sector hiring slowed in March, with company payrolls rising by 145,000 for the month. That was lower than the consensus estimate of 210,000, signaling that employers are cutting back on hiring. Also, the Institute for Supply Management's services activity index fell to 51.2 points, lower than the consensus estimate of 54.4. While an index above 50 indicates expansion, the decline suggests companies and consumers are becoming more cautious. When paired with the latest ISM factory survey that shows a further deterioration, the services data may heighten concerns about the economic outlook as credit conditions tighten and interest rates remain high.

The data comes after Tuesday's job openings report, which suggested the Federal Reserve's efforts to cool the labour market might finally be having an effect. However, some investors are taking the softer data as a potential sign that US economic growth is heading for a sharp slowdown or even recession.

Across the globe, the S&P 500 closed down by 0.25%, Dow Jones closed up by 0.24%, and the Nasdaq closed down by 1.07%. The FTSE 100 was up by 0.37%, the DAX was down by 0.53%, and CAC40 was down by 0.39%. In the Asian markets, the Nikkei 225 is currently down by 1.68%, and the Heng Seng is currently down by 0.08%.

On the commodities front, Brent Crude oil is trading at $84.55 a barrel, and WTI Crude oil is trading at $80.24 a barrel. Gold is currently trading at $2013.71, Platinum is now trading at $1025.63, and lastly, Palladium is at $1423.00.

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