Fin24

JSE edges up during tentative trade

2012-07-24 11:20

Johannesburg - The JSE opened firmer but eased back on Tuesday as investors weighed the improvement in the preliminary HSBC China manufacturing PMI data for July against Moody’s revision of its credit outlook on three eurozone countries‚ including Germany.

“Europe continues to be a weak spot in the global economy‚” said Devin Shutte‚ a trader at stockbrokerage‚ Newstrading. “Moody’s report has dented market sentiment.

The ratings agency has revised its credit rating outlook on triple-A rated Germany‚ Netherlands and Luxembourg to negative from stable‚ citing increased uncertainty regarding the euro area’s prospects and a higher probability that Greece will leave the eurozone.

Meanwhile‚ the PMI data out of China came in at 49.5 in July‚ compared with 48.2 in June. A reading above 50 indicates expansion‚ while a reading below 50 suggests contraction. SA exports a lot of minerals to China.