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JSE opens in red on European jitters

Dec 20 2011 10:11 I-Net Bridge

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Johannesburg - Negative global sentiment continued to weigh on the local bourse on Tuesday, with another opening in the red, led by continued uncertainty over the state of the eurozone.

At 09:16 local time, the All Share [JSE:J203] index was 0.16% lower. The resources index lost 0.54% and gold stocks slipped 1.03% with the platinum index losing 0.28%.

Financials were 0.09% down, while industrials were flat (-0.01%) and banks dropped 0.07%.

The rand was bid at 8.36 to the dollar, unchanged from the JSE's close on Monday. Gold traded at US$1,599.12 a troy ounce from US$1,597.93/oz at the JSE's previous close, while platinum was quoted at US$1,417.50/oz, from US$1,416.50/oz at the previous close.

A local dealer said that negative sentiment drove US markets lower on Monday which then impacted Asia in early morning trade. "I don't expect too much to happen today with not a lot of data to drive direction," he said.

Dow Jones Newswires reported that regional markets in Asia were mixed amid continued worries over the sovereign-debt situation in Europe. The Nikkei gained 0.5%, the HSI added 0.4%, the Kospi rose 0.9%, and the Sensex dropped 0.3%, with the Shanghai Composite flat.

Japan's economy minister Motohisa Furukawa said that the government and the BOJ would work together to ensure the country's economy and financial markets were not damaged by any instability after the death of North Korean leader Kim Jong Il. Japan's October all industry activity rose 0.8% on-month compared with a 0.7% contraction in September.

European stocks were expected to start with small losses on Tuesday, following the declines in the US and after a mixed session in Asia.

The teleconference call between EU finance ministers late on Monday brought some agreement on a loan to the IMF, but an EUR150 billion loan was forthcoming rather than the EUR200 billion previously expected.

Meanwhile, Monday's comments made by ECB president Draghi on the state of the eurozone would continue to weigh. On the economic agenda, the German Ifo survey was at 09:00 GMT. US housing starts for November were at 13:30 GMT.


 
 
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