Share

JSE dragged down by European slide

Johannesburg - The JSE had declined further into negative territory at noon on Monday as the local market tracked European markets.

A local trader said that the market was lowering in line with Europe as sentiment over policy decisions turned sour.

He said: "For now the market's not happy. There's not a lot keeping markets up."

At 11:55 local time, the all share index was down 0.80%. Platinums dropped 1.68%, gold miners declined 1.60%, and resources decreased 0.95%. Banks were 1.13% lower, financials degenerated 0.81%, and industrials lost 0.63%.

The rand was bid at 8.23 to the dollar, from 8.12 at the JSE's close on Friday. Gold traded at US$1,679.57 a troy ounce from US$1,711.66/oz at the JSE's previous close, while platinum was quoted at US$1,494.70/oz, from US$1,498.50/oz at the previous close.

Dow Jones Newswires reported that European stock markets fell on Monday as the rally sparked by Friday's progress at the summit of European Union leaders proved to be short-lived.

London's FTSE 100 Index was down 0.81% at 11:55 local time.

On Friday, 26 of the 27 EU countries agreed to work toward a closer fiscal union that includes new rules and increased coordination between countries. But the new treaty, with tougher budget discipline and automatic sanctions, could take months to negotiate, said Rabobank.

"Doubts about the road to closer fiscal integration, the lack of firepower in [the] European Financial Stability Facility [and the International Monetary Fund] to deal with the crisis in the short term and the European Central Bank's reluctance to use its 'bazooka' continue to plague the markets," it said.

Standard & Poor's warned that a downgrade of a raft of European economies was a medium-term possibility after Friday's communique. Separately, Moody's said the communique offers 'few new measures,' and that it still expects to reassess its ratings on European sovereigns early next year.

The UK did not agree to the principles of the new treaty when it could not secure its requested concessions. The decision by Prime Minister David Cameron has faced criticism, most notably from Deputy Prime Minister Nick Clegg, who warned that the veto would leave Britain in danger of being "isolated and marginalised". 
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.95
-0.1%
Rand - Pound
23.91
-0.0%
Rand - Euro
20.42
+0.1%
Rand - Aus dollar
12.34
+0.0%
Rand - Yen
0.13
-0.1%
Platinum
908.05
+1.2%
Palladium
1,014.94
+1.3%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders