JSE gains as markets wait for US-China trade news

The JSE was higher on Wednesday morning, while global markets await more news regarding the US-China trade deal.

Markets are hoping that the two economic superpowers will  sign a partial trade deal later in November while reports that the US may roll back some of the tariffs on Chinese goods lifted global market sentiment.

“[US President] Donald Trump could hope for minimum $20bn worth of farm purchases in exchange of dropping tariffs. That number could shoot up to $40bn-$50bn US dollars,” London Capital Group senior market analyst Ipek Ozkardeskaya said. No-one other than China could promise such huge numbers, she said.

Earlier, the Shanghai Composite was down 0.43 while Hong Kong’s was flat and Japan’s Nikkei 225 was up 0.22%.  In Europe, the FTSE 100 was little changed while France’s CAC 40 was up 0.23% and Germany’s DAX 0.2%.

The JSE all share added 0.46% to 57,508.4 points and the top 40 0.52%. Banks were up 0.75% and resources 0.5%. 

South32 was up 1.89% to R26.89. The mining and metals company said on Wednesday that Seriti Resources has reached a deal to acquire South32’s coal assets.

Intu Properties dropped 16% to R6.53. The company said on Wednesday that it was close to selling two Spanish assets to raise equity.  

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Source: businesslive.co.za