Bloomberg News

South African Stocks Halt Week-Long Rally on U.S. Hiring Data

September 02, 2011

Sept. 2 (Bloomberg) -- South Africa’s stock index fell the most in two weeks after U.S. employment unexpectedly stagnated in August, raising concern that the global economic recovery is faltering.

The FTSE/JSE Africa All Share gauge declined 1.8 percent to 30,518.92 by 5 p.m. in Johannesburg, paring the week’s advance to 3.7 percent.

Payrolls were unchanged last month, the weakest reading since September 2010, after an 85,000 gain in July that was less than initially estimated, Labor Department data showed today in Washington. The lack of hiring is one reason Federal Reserve Chairman Ben S. Bernanke last week said the central bank still has tools available to stimulate growth.

“The clawback today has to be seen in the context of the very strong markets we have seen this week,” Simon Hudson- Peacock, a portfolio manager at Cadiz Asset Management, said by telephone from Cape Town. “Bernanke’s speech kick-started the recovery and these numbers have just put a dampner on that and there is a retracement from the positive mood earlier in the week.”

Emerging-market stocks fell for the first time in six days, with the MSCI Emerging Markets Index paring this week’s rally to 4.9 percent, the biggest since October 2009.

--Editors: Ana Monteiro, Tim Farrand

To contact the reporter on this story: Stephen Gunnion in Johannesburg at sgunnion@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


Tim Cook's Reboot
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus