MARKET WRAP: JSE pulled lower by mining stocks

The JSE closed down a little, for a third consecutive trading day on Monday, with miners faring worst despite higher precious metal prices. Lower trading volumes were the order of the day as investors and traders focus on the holidays.

European markets were mixed following Prime Minister Boris Johnson’s withdrawal bill being passed by UK MPs on Friday. Investor uncertainty over a possible no-deal Brexit still lingers, with lawmakers set to debate the bill in January.

In an attempt to boost imports and improve its slowing economic growth, China’s finance ministry said on Monday that it will lower import tariffs on more than 850 products, ranging from frozen pork to some types of semi-conductors in 2020. Investor sentiment has improved of late on expectations that the US and China will sign the first phase of a trade deal “very shortly”, according to US president Donald Trump on Saturday.

With an initial US-China trade deal unlikely to be signed in 2019, and Johnson’s willingness to take a hard line on future Brexit negotiations, analysts said stocks had little reason to move much from current levels.

“US stocks remain close to record highs as trade tensions abated further after China cut tariffs on an array of goods from January 1 2020, another sign that the phase-one deal will get finalised in early January,” said Oanda senior market strategist Edward Moya.

“Trump is entering the holidays in a good mood as US stocks continue to make fresh record highs and as his phase-one trade deal will likely see significant support from farmers in battleground states.” 

Asian markets were mixed on Monday, with Hong Kong’s Hang Seng up 0.13% and Japan’s Nikkei 225 0.02%, while the Shangai Composite was down 1.4%.

The Dow was last seen up 0.36% at 28,558.11 points, while in Europe, the FTSE 100 had gained 0.43% and and France’s CAC 40 0.15%, while Germany’s DAX 30 was down 0.2% .

The JSE all share lost 0.55% to 57,092.8 points and the top 40 0.54%. Resources fell 1.25% and gold miners 1.51%, while the platinum index slumped 3.62%.

Gold was up 0.32% to $1,482.65/oz and platinum 1.65% to $932.05. Brent crude was flat at $66 a barrel.

The all share is now up 8.26% for 2019.

The rand resumed its winning ways on Monday and at 6pm it had gained 0.43% to R14.2055/$, 0.41% to R15.7482/€ and 1.06%  to R18.3567/£. The euro firmed 0.06% to $1.1087.

The rand is now up 1.06% to the dollar this year and more than 4.3% to the euro. It is little changed against the pound. 

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