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Johannesburg - The JSE drifted lower at the opening on Tuesday, as investors turned cautious amid concerns about rising Italian borrowing costs.
Martin Lentsoane, equity derivatives trader at Newstrading, said the market was likely to be subdued today ahead of the Italian parliamentary vote.
By 09:21 local time, the JSE All Share [JSE:J203] index was down 0.36%, with resources losing 0.17% and platinum miners 0.72% lower. Banks shed 0.39%, financials were down 0.35%, and industrials declined 0.57%. However, the gold index firmed 1.41%.
The rand was bid at R7.95 to the dollar, from R7.91 at the JSE's close on Monday. Gold traded at $1 790.05 a troy ounce from $1 781.99/oz at the JSE's previous close, while platinum was at $1 652/oz, from $1 651.50/oz previously.
Dow Jones Newswires reported that European stocks were expected to start cautiously higher on Tuesday, following the gains on Wall Street, though the worsening political backdrop in Italy may mean any upside will be short-lived, warned commentators.
Details of some of the options of Europe's key bailout fund emerged late on Monday, which boosted Wall Street and could provide support in Europe on Tuesday.
Asian stock markets were mixed amid caution over Europe's debt woes, while Tokyo lost ground, with Olympus Corp's shares plummeting 29% after the company admitted it had covered up huge investment losses for decades.
Many markets came off their morning lows on Wall Street's strong finish on Monday, but demand was tempered by escalating concerns that Italy could be sucked into a deepening eurozone debt crisis.
