JSE pulls back slightly as market eyes US-Sino trade talks

The JSE gave up a little of its recent gains on Thursday morning, as global markets treaded water as US-China trade talks resume.

US and Chinese officials have indicated they are close to ending their trade dispute, having slapped billions of dollars’ worth of tariffs on each others’ goods in 2018.

US President Donald Trump may announce a meeting with his Chinese counterpart Xi Jinping later.

Asian markets were mixed on Thursday, while European markets were lower.

Though global sentiment was still somewhat positive, many investors were unwinding their positions, having possibly been overzealous in expecting continued loose monetary policy, said SPI Asset Management head of trading Stephen Innes.

At 10am the all share was down 0.19% to 57,817.4 points and the top 40 0.18%. Banks had lost 0.66% while platinums had added 0.85%.

Platinum was up 1.22% to $880.12/oz and spot gold 0.19% to $1,292.21. Brent crude had fallen 0.45% to $69.14 a barrel.

The rand was 0.33% weaker at R14.1934/$.

There were few major catalysts operating in the market. Earlier, India’s central bank lowered its interest rate 25 basis points to 6%, though the move was widely expected.

Rand hedge AB InBev had risen 0.93% to R1,202.28 and British American Tobacco 0.69% to R580.88.

Aspen Pharmacare was up 5.99% to R103.80.

Capitec fell 1.68% to R1,360.09 and Nedbank 0.92% to R254.38.

Focus in the market remains on the US-China trade talks, with the week’s major data release coming on Friday, when US jobs numbers for March are due.

Minutes from the European Central Bank’s last policy meeting are scheduled for release at 1.30pm SA time on Thursday.

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