Stronger opening for JSE as US-Mexico deal helps global sentiment

The JSE opened higher on Monday tracking global markets after the US and Mexico reached a deal on Friday, halting the imposition of a 5% tariff on imports from Mexico. 

Following negotiations last week, US President Donald Trump announced that the US and Mexico had reached an agreement to curb illegal migration from the latter to the US. The neighbouring countries agreed to expand the asylum programme and to deploy more security forces, Reuters reported. 

In May, the US had threatened to impose a 5% tariff on Mexican imports on June 10 if Mexico did not address illegal migration. 

The deal boosted global stocks: the Hong Kong’s Hang Seng had gained 2.29%, the Shanghai Composite 0.86% and Japan’s Nikkei 225 0.53%. In Europe, the FTSE 100 was up 0.58% and France’s CAC 40 0.48%.

By 09.50am, the JSE all share rose 0.65% to 58,479.4 points and the top 40 was up 0.79%. Industrials and general retailers led gains, up 0.93% and 1.37%, respectively. 

Gold miners had fallen 3.4% and platinum miners 2.16%, both shedding last week’s gains.

Among gold miners, Harmony slumped 5.68% to R26.89. AngloGold Ashanti had fallen 3.45% to R215.42, Sibanye 3.24% to R14.35 and Gold Fields 3.11% to R73.41.