JSE follows Asian markets up

Johannesburg - The JSE began Tuesday in the black following eastern markets higher.

A local trader said that the positive start was across the board this morning. Volumes were low, although the trader noted that it was still early in the trading day.

At 09:17 local time, the JSE All Share [JSE:J203] index was 0.64% higher at 33,843.50. Platinums accumulated 0.86%, resources took up 0.80% and gold stocks gained 0.64%. Banks were 0.68% higher, financials generated 0.60%, and industrials edged up 0.53%.

The rand was a tad stronger at R7.81 to the dollar from R7.86 at the JSE's close on Monday. Gold was quoted at $1 737.83 a troy ounce from $1 729.28/oz at the JSE's previous close, while platinum was at $1 622.08/oz, from $1 611.50/oz before.

Dow Jones Newswires reported that Asian markets rose on Tuesday after EU leaders agreed a treaty aimed at ending huge deficits, although traders remain nervous as Greece continued talks to slash its debt mountain.

Leaders of 25 EU governments agreed on Monday night on what some were billing as an historic pact to move to closer fiscal union and to finally sign off on the details of an €500bn permanent bailout fund for the eurozone that should come into operation at mid-year.

They discussed the looming debt restructuring for Greece which threatened to overshadow the talks - but provided no further clarity on the eventual outcome of an issue that was creating increasing nervousness in financial markets on Monday.

The final shape of the deal to reduce Greece's debt is still unknown after months of wrangling between the Greek government, representatives of bondholders, and officials from the EU, the International Monetary Fund and the European Central Bank.

European stock markets were likely to open higher, with bunds and gilts under some pressure. The euro is higher, along with spot gold and oil futures, although copper continues to see profit-taking.