JSE lifts on US optimism

Johannesburg - The JSE opened higher on Friday, as the market took to the US markets' slight recovery from their previous lows, with optimism.

A local trader said that initial US jobless claims were positive and lifted trade in that market, however Europe concerns and specifically the euro-dollar level were still weighing heavily on markets.

At 09:22 local time, the JSE All Share [JSE:J203] index was 0.49% firmer. Gold stocks rose 1.32%, resources secured 0.74% and platinum added 0.67%.

Industrials lifted 0.45%, banks collected 0.30% and financials were up 0.22%.

The rand was bid at R8.16 to the dollar from R8.19 at the JSE's close on Thursday. Gold traded at $1 626.58 a troy ounce from $1 601.87 at the JSE's previous close, while platinum was quoted at $1 416.20/oz, from $1 408/oz at the previous close.

Dow Jones Newswires reported that Asian stock markets fell on Friday as fresh worries over the outlook for European banks offset better-than-expected US economic data, hitting regional financial and exporter stocks.

Many investors were also cautious ahead of a key US jobs report due later on Friday. "Unfortunately for investors the positive news coming out of the US is being overshadowed by the loud and negative noise from Europe," said Justin Harper, head of research at IG Markets in Singapore.

Japan's finance minister on Friday called for stronger efforts by Europe to stem the region's debt crisis and the falling euro, saying recent drops in the common currency versus the yen could deal a serious blow to Japan's European-bound exports.

French President Nicolas Sarkozy is due to meet Italian Prime Minister Mario Monti in Paris today, in the first of a series of meetings over the coming weeks.

Investors are likely to pull back from stocks in Europe on Friday, leaving markets slightly lower to start, while bunds and gilts start mixed ahead of the US labour data. The euro is narrowly mixed, while spot gold is higher and oil futures are lower.