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Johannesburg - The JSE was trading in the black
at noon on Monday, continuing its run against the trend on the back of a
weaker rand.
A local trader said: "It's surprising but we're up at the moment even after the downgrades."
He said the local market was very much against the trend. The euro is on a 17-month low against the dollar and in spite of that commodity prices are higher.
He said that trade today was a "positive sign" as bad news was being priced into markets thereby preventing an extreme drop.
The weaker rand continued to aid stocks and keep trade steady.
At noon local time, the JSE All Share [JSE:J203] index had gained 0.22%. Platinums garnered 0.23%, resources added 0.22% while gold stocks were in flat territory (0.07%).
Industrials took up 0.34% while banks lost 0.18%, and financials hovered in flat territory (-0.05%).
The rand was bid at 8.14 to the dollar from 8.03 at the JSE's close on Friday. Gold traded at US$1,642.53 a troy ounce from US$1,634.12 at the JSE's previous close, while platinum was quoted at US$1,492/oz, from US$1,475.50/oz at the previous close.
Dow Jones Newswires reported that European stocks opened lower on Monday as investors reacted to Standard & Poor's downgrade of nine eurozone countries, including France, after the close on Friday.
At noon local time, London's FTSE 100 Index was down 0.18% and the CAC 40 Index in Paris decreased 0.21%.
S&P cut the debt ratings of France and Austria by one notch to double-A-plus from triple-A and downgraded seven other countries, including Italy, Spain and Portugal, whose ratings were cut by one notch. It cited insufficient policy initiatives taken by European leaders to address ongoing systemic stresses in the eurozone. However, it maintained the triple-A rating on Europe's largest economy, Germany.
Opening calls were not too dramatic, however, as Friday's session saw investors ditch equities on news that the ratings agency had notified European governments of the imminent downgrades. At the same time, traders pointed out that while the timing of the move may have been somewhat of a surprise, the downgrades themselves had been well flagged.
Traders pointed out that the focus will now shift to whether the European Financial Stability Facility can maintain its triple-A rating, given that two of the original six triple-A rated countries have been downgraded.
Looking ahead to the rest of the week, market sentiment will be tested on Thursday, when France will attempt to raise EUR8 billion (US$10.14 billion) from its first long-term debt auction of 2012.
Meanwhile, Monday kicks the week off on a quiet note in terms of economic data, with no major UK or eurozone releases due and US markets closed for Martin Luther King Day.
In Asia, stock markets ended lower on Monday as market sentiment weakened significantly after Standard & Poor's downgrades. Japan's Nikkei 225 was down 1%, and Hong Kong's Hang Seng Index declined 1.43%.
A local trader said: "It's surprising but we're up at the moment even after the downgrades."
He said the local market was very much against the trend. The euro is on a 17-month low against the dollar and in spite of that commodity prices are higher.
He said that trade today was a "positive sign" as bad news was being priced into markets thereby preventing an extreme drop.
The weaker rand continued to aid stocks and keep trade steady.
At noon local time, the JSE All Share [JSE:J203] index had gained 0.22%. Platinums garnered 0.23%, resources added 0.22% while gold stocks were in flat territory (0.07%).
Industrials took up 0.34% while banks lost 0.18%, and financials hovered in flat territory (-0.05%).
The rand was bid at 8.14 to the dollar from 8.03 at the JSE's close on Friday. Gold traded at US$1,642.53 a troy ounce from US$1,634.12 at the JSE's previous close, while platinum was quoted at US$1,492/oz, from US$1,475.50/oz at the previous close.
Dow Jones Newswires reported that European stocks opened lower on Monday as investors reacted to Standard & Poor's downgrade of nine eurozone countries, including France, after the close on Friday.
At noon local time, London's FTSE 100 Index was down 0.18% and the CAC 40 Index in Paris decreased 0.21%.
S&P cut the debt ratings of France and Austria by one notch to double-A-plus from triple-A and downgraded seven other countries, including Italy, Spain and Portugal, whose ratings were cut by one notch. It cited insufficient policy initiatives taken by European leaders to address ongoing systemic stresses in the eurozone. However, it maintained the triple-A rating on Europe's largest economy, Germany.
Opening calls were not too dramatic, however, as Friday's session saw investors ditch equities on news that the ratings agency had notified European governments of the imminent downgrades. At the same time, traders pointed out that while the timing of the move may have been somewhat of a surprise, the downgrades themselves had been well flagged.
Traders pointed out that the focus will now shift to whether the European Financial Stability Facility can maintain its triple-A rating, given that two of the original six triple-A rated countries have been downgraded.
Looking ahead to the rest of the week, market sentiment will be tested on Thursday, when France will attempt to raise EUR8 billion (US$10.14 billion) from its first long-term debt auction of 2012.
Meanwhile, Monday kicks the week off on a quiet note in terms of economic data, with no major UK or eurozone releases due and US markets closed for Martin Luther King Day.
In Asia, stock markets ended lower on Monday as market sentiment weakened significantly after Standard & Poor's downgrades. Japan's Nikkei 225 was down 1%, and Hong Kong's Hang Seng Index declined 1.43%.
