MARKET WRAP: JSE breaks three-day losing streak

The JSE turned positive on Tuesday after three consecutive trading days of losses, boosted by miners, which gained on higher commodity prices.

At 5pm, gold was up 0.63% to $1,494.69/oz and platinum 1.07% to $941.33. Brent crude had gained 0.6% at $66.92 a barrel. So far in 2019 gold has risen 16.54% and platinum 18.57%, their biggest gains since 2010. Brent is up the most in three years, at 23.64%.

With SA markets closed for the Christmas holidays on Wednesday and Thursday, any trade or political headlines may only have an effect on Friday, when the JSE re-opens.

Asian and European markets were mixed on Tuesday, with most still reflecting the optimism over improved trade relations between China and the US, with global economic growth likely to recover once a deal has been finalised. Also, Beijing announced on Monday that it plans to remove import tariffs on a range of goods from the beginning of 2020.

Markets joined the holiday spirit on Tuesday with trading volumes becoming very thin, said Oanda senior market analyst Edward Moya. “This holiday period should be rather calm as trade updates appear very constructive as we near the finalisation of a phase-one trade deal [between the US and China] in January. Gold is sneakily turning bullish as we approach year-end, having withstood a wrath of trade optimism that has made many investors question the need for safe-havens.” 

The JSE all share gained 0.27% to 57,244.9 points and the top 40 0.29%. Resources added 1.26%, gold miners 4.88%, and the platinum index 4.07%. The all share is now up 8.55% in 2019.

Earlier, the Shangai Composite rose 0.67%, while Hong Kong’s Hang Seng fell 0.15%. Japan’s Nikkei 225 was flat.

The Dow was last seen up 0.27% at 28,532.36 points, while in Europe, the FTSE 100 had gained 0.11%, France’s CAC 40 was flat and German markets were closed. 

The rand rose for a second day and at 5.30pm was 0.42% firmer at R14.1535/$. It had gained 0.41% to R15.6883/€ and 0.27% to R18.3323/£. The euro was little changed at $1.1086.

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Source: businesslive.co.za