JSE surges almost 4% as US-China relief rally lifts almost everyone
The JSE jumped as much as 3.94%, on track for its best day in weeks, as risk-assets cheered a 90-day ceasefire between the US and China.
The parties have agreed to try to resolve their ongoing trade dispute, which has dampened prospects for global economic growth and created volatility in markets in 2018.
At 10am the all share was up 3.94% at 52,662.2 points and the top 40 4.25%. Industrials jumped 4.57%, platinum miners 5.65%, banks 2.73% and financials 2.18%.
The 90-day truce avoids the imposition of 25% tariffs on $200bn of Chinese goods, giving the parties time to resolve a number of differences, analysts said.
Brent crude had surged 5.59% to $62.40 a barrel, lifted by the easing trade tension, as well as the prospect that oil cartel Opec will agree to production cuts this week.
Local focus will be on Tuesday’s GDP data for the third quarter, which will finally resolve whether SA exited its technical recession — defined as two-consecutive quarters of contraction.
Sasol surged 5.84% to R430.02.
Diversified miner Glencore gained 4.79% to R53.63, BHP 4.89% to R276.54 and Anglo American 4.49% to R289.44.
Rand hedge Richemont jumped 4.12% to R92.80.
FirstRand was up 3.64% to R69.23.
Naspers had rocketed 8.24% to R2,990.71.
At the same time platinum had gained 1.14% to $814.61 an ounce and gold 0.79% to $1,231.77.
Source: businesslive.co.za
