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Johannesburg - The JSE began trade on the back foot on Tuesday in line with global sentiment as markets continue to digest US debt developments.
By 09:08 local time, the JSE All Share [JSE:J203] index was 0.17% off, with resources down 0.65%. Platinum miners added 0.11%, and gold miners were a fraction higher at 0.05%.
Banks lost 0.15%, financials dropped 0.20% and industrials were flat.
The rand was bid at R6.74 to the dollar, from R6.72 at the JSE's close on Monday. Gold was quoted at $1 625 a troy ounce from $1 627.02/oz at the JSE's previous close, while platinum was at $1 791.50/oz, from $1 796/oz previously.
A local trader said: "We have started weaker this morning as was expected. The JSE started to drop late yesterday and is in line with global markets this morning as investors digest news out of the US."
Dow Jones Newswires reported that European stocks were expected to open flat to marginally lower on Tuesday, as concerns over the global growth outlook and the possibility of a credit-rating downgrade to the world's largest economy overshadow what looks to be a done deal on the US debt plan.
The House of Representatives voted 269-161 on a plan to raise the $14.29 trillion debt limit and trim federal deficits. The Senate is expected to vote on and pass the measure later on Tuesday.
But investors are not expected to take much comfort in the package. "Now the question arises as to how the ratings agencies will assess the continued rise in US debt outstanding and whether one or more will cut the US's sovereign credit rating," said Rabobank.
At the same time, the focus shifts firmly back to fundamentals, after a slew of weak manufacturing readings from the eurozone, the UK, the US and China sparked fresh worries about the prospects for global growth. "While the political cloud of uncertainty may lift somewhat, the economic storm clouds are darkening," said BNP Paribas.
On the data front, the eurozone producer price index is at 09:00 GMT and US personal income and spending is at 12:30 GMT.
In Asia, shares fell on Tuesday. Japan's Nikkei Stock Average fell 1.3%, Australia's S&P/ASX 200 lost 1.0%, South Korea's Kospi Composite fell 1.3% and New Zealand's NZX-50 was 0.3% lower.
By 09:08 local time, the JSE All Share [JSE:J203] index was 0.17% off, with resources down 0.65%. Platinum miners added 0.11%, and gold miners were a fraction higher at 0.05%.
Banks lost 0.15%, financials dropped 0.20% and industrials were flat.
The rand was bid at R6.74 to the dollar, from R6.72 at the JSE's close on Monday. Gold was quoted at $1 625 a troy ounce from $1 627.02/oz at the JSE's previous close, while platinum was at $1 791.50/oz, from $1 796/oz previously.
A local trader said: "We have started weaker this morning as was expected. The JSE started to drop late yesterday and is in line with global markets this morning as investors digest news out of the US."
Dow Jones Newswires reported that European stocks were expected to open flat to marginally lower on Tuesday, as concerns over the global growth outlook and the possibility of a credit-rating downgrade to the world's largest economy overshadow what looks to be a done deal on the US debt plan.
The House of Representatives voted 269-161 on a plan to raise the $14.29 trillion debt limit and trim federal deficits. The Senate is expected to vote on and pass the measure later on Tuesday.
But investors are not expected to take much comfort in the package. "Now the question arises as to how the ratings agencies will assess the continued rise in US debt outstanding and whether one or more will cut the US's sovereign credit rating," said Rabobank.
At the same time, the focus shifts firmly back to fundamentals, after a slew of weak manufacturing readings from the eurozone, the UK, the US and China sparked fresh worries about the prospects for global growth. "While the political cloud of uncertainty may lift somewhat, the economic storm clouds are darkening," said BNP Paribas.
On the data front, the eurozone producer price index is at 09:00 GMT and US personal income and spending is at 12:30 GMT.
In Asia, shares fell on Tuesday. Japan's Nikkei Stock Average fell 1.3%, Australia's S&P/ASX 200 lost 1.0%, South Korea's Kospi Composite fell 1.3% and New Zealand's NZX-50 was 0.3% lower.
