JSE gets boost from US-China trade war optimism

Hopes that the US and China were closing in on a partial trade deal boosted the JSE on Thursday morning, with market heavyweight Naspers leading the gains.

The US had officially labelled China a currency manipulator in August, but Bloomberg reported on Thursday the US was now considering a deal on currency valuations as part of a first phase of a deal. That could also see some tariffs suspended next week.

The rand was benefiting, having gained 0.25% to R15.135/$ as of 9.48am.

The all share had risen 0.32% to 54,514.6 points and the top 40 0.36%. Gold miners slipped 0.8% and platinums 1.02%.

Gold had added 0.27% to $1,509.4/oz while platinum had lost 0.27% to $890.40. Brent crude was 0.41% weaker at $58.06 a barrel.

Diversified miner Anglo American was up 1.81% to R348.49.

Rand hedge AB InBev gave back 1.19% to R1,392.15 and British American Tobacco 1.14% to R517. Richemont was up 1.66% to R107.55.

Old Mutual had lost 1.31% to R19.53.

Naspers had added 0.89% to R2,260.45.

Mondi was down 3.56% to R276.43, having earlier warned that earnings before interest, taxation, depreciation and amortisation (ebitda) had fallen 18% in its third quarter to end September.

Focus on Thursday remains on headlines related to the US-China trade war, although SA’s mining and manufacturing numbers for August are due later.

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