Johannesburg - The JSE opened weaker on Monday morning‚ in
line with world markets‚ with all the indices trading in negative territory and
platinum stocks weighing the most due to continued labour problems in the
sector.
At 9:22pm‚ the JSE All Share [JSE:J203] index was 0.19%
softer at 36‚800.35 points‚ with the Top 40 - (Tradeable) [JSE:J200] dipping
0.23% to 32‚643.13. The platinum index shed 0.74%‚ while gold miners gave back
0.5%.
Eastern markets were also trading lower‚ with the Nikkei 225
closing flat (-0.04%)‚ while the Hang Seng index was seen 0.29% weaker at
9:06am local time. The New York Stock Exchange will be closed on Monday‚ as
Hurricane Sandy approaches the US East Coast.
Rand Merchant Bank said the release of third-quarter gross
domestic product (GDP) data for the US on Friday served as another reminder
that US economic activity was improving. The economy expanded by 2% quarter on
quarter‚ higher than the 1.3% registered in the second quarter.
“That said‚ the disappointing corporate earnings releases
last week and the looming fiscal cliff will cast doubt over the sustainability
of the recovery. We remain comfortable with our expectation that the dollar
should only see modest gains‚” the bank said.
“This week’s data releases and events will keep financial
markets busy‚ with a slew of global PMI (purchasing managers index) numbers.
“The US nonfarm payrolls data on Friday‚ however‚ will
attract the most attention. We expect the releases to send mixed signals about
the health of the global economy. US data should continue to paint a positive
picture‚ while European data will likely disappoint further‚” the bank said.
“Apart from weak economic data‚ Spain’s reluctance to
request a bail-out will remain a drag on the euro‚ which will limit any significant
rand gains.
“The market is‚ however‚ turning more positive on the outlook for China. Chinese manufacturing PMI is expected to increase to around 50 in October‚ a signal that the economy has bottomed in the third quarter. The improved outlook for China is likely to provide some support to commodities‚ which remain on a downtrend‚” it said.