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JSE searches for direction, eyes US

Dec 14 2011 10:13 I-Net Bridge

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Johannesburg - The JSE was flat in early trade on Wednesday, continuing sluggish trade from Tuesday, but looking to US futures, which were pointing slightly firmer.

A local trader said there was more news out today including industrial production from Europe and mortgage application data from the US that may give more direction during the course of the day.

At 09:16 local time, the All Share [JSE:J203] index was static (0.03%). Platinums secured 0.41% but gold shares declined 1.42% and resources lost 0.21%.

Industrials edged 0.18% higher, financials lifted 0.12% and banks were flat (0.02%).

The rand had weakened at R8.31 to the dollar, from R8.19 at the JSE's close on Tuesday. Gold traded at $1 639.58 a troy ounce from $1 671.70/oz at the JSE's previous close, while platinum was quoted at $1 480.50/oz, from $1 498.20/oz at the previous close.

Dow Jones Newswires reported that Asian stock markets came off their lows in choppy trade on Wednesday, while regional exporters underperformed amid a gloomy global growth outlook as investors found little inspiration from the US Federal Reserve's policy meeting.

Senior European officials said on Tuesday that it could be difficult to convert last week's summit accord for tougher budget discipline among eurozone governments into a watertight legal pact, emphasising the agreement's path to fruition could be tough.

Amid the concerns about implementation of the EU's plans, stock markets may start lower on Wednesday, with investors turning to bunds and gilts instead.

 
europe debt crisis  |  jse  |  markets
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