MARKET WRAP: JSE rebounds almost 1% as risk-off sentiment eases

The JSE pushed higher on Monday, bolstered by a strong showing from banks, with most indices ending the day positive.

European markets were firmer, as was the rand. Emerging-market assets were given a boost by the Brazilian election at the weekend, which saw victory going to the more pro-business candidate. Despite the strong start to the week, analysts said investor sentiment towards equities continued to be uncertain, given escalating concern that trade conflict was damaging economic growth.

The all share gained 0.95% to 51,320.5 points and the top 40 1.03%. General retailers jumped 4.16% and banks 3.96%. Gold miners lost 3.92%.

Retailers and banks found some support from a declining oil price, which was back at $77 a barrel as the market continues to gauge whether increased Opec production will offset the drop in supply due to sanctions on Iran.

European markets were generally higher, lifted by easing concerns about Italy, and a strong earnings report from global banking giant HSBC, reported Dow Jones Newswires.

Earlier, private-sector credit extension rose to 6.26% in September, a deceleration from August, but still well ahead of the Trading Economics consensus forecast of 5.5%.

The household debt-to-disposable income ratio remained elevated, with many consumers significantly leveraged, said Investec economist Lara Hodes.  A number of other factors continued to weigh on consumer spending, and a credit-fueled recovery in consumption expenditure was not expected, she said. As such, any significant demand-led inflationary pressures should remain absent.