JSE opens well but trade war truce hits gold miners
The JSE started off the new month firmer, after a trade truce between the US and China lifted sentiment. However, risk-on trade had gold miners set for their worst day since March 29.
The two economic superpowers agreed to resume trade negotiations following a meeting at the G20 summit in Osaka, Japan on Saturday. As part of the agreement, US President Donald Trump and Chinese President Xi Jinping agreed to pause the imposition of more tariffs and to ease the ban on Chinese telecoms company Huawei, after it was blacklisted in the US market in May.
The Shanghai composite had earlier gained 2.22% while the Japanese Nikkei 225 had fallen 0.29%. The Hong Kong Hang Seng was closed for a public holiday.
By 10am, the JSE had gained 0.69% to 58,608.10 points, after concluding its best month in more than a year on Friday. The top 40 was up 0.83%. Banks and financials had gained 1.67% and 1.2%, respectively.
Gold miners had slumped 5.86% in intraday trade, set for their worst day since March. Spot gold — a safe-haven asset — lost ground following progress in the US-China trade dispute. Gold had fallen below $1,400/oz on Monday morning after reaching its highest level in six years last week.
Sibanye had dropped 6.68% to R15.64, AngloGold Ashanti 6.54% to R237.41 ,Gold Fields 4.86% to R73.02 and Harmony 4.63% to R30.27.
Platinum miners had fallen 2.24%.
The South African Chamber of Commerce and Industry’s business confidence index, as well as total vehicle sales for June, are due today.
Source: businesslive.co.za
