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JSE treads into black

Nov 25 2009 17:45

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Johannesburg - The JSE ended marginally in the black on Wednesday led by commodities amid a stronger euro against the greenback, while US data revealed better-than-expected jobless claims.

At 17:00 the JSE all share index ended 0.41% higher, led by resources, up 1.24%. Gold producers gained 1.06% and platinum counters swelled 1.34%.

Banks and financials fell 0.09% and 0.21% respectively, while industrials lost 0.21%.

The rand was bid at 7.34 to the dollar, from 7.49 when the JSE closed on Monday. Gold was quoted at $1 180.50 a troy ounce from $1 164.32 at the JSE's last close, and platinum was at $1 471/oz, from $1 454/oz at its previous close.

A local trader said: "We picked up from Australian mining stocks this morning, which traded well on precious metal prices.

"The euro/dollar broke the 1.5000 barrier, which added to support for commodity prices, and then later on this afternoon we had mixed results from US data - unemployment figures were better than expected. We will continue to track the Dow overnight."

Dow Jones Newswire reported that US stocks were modestly higher in early trading on Wednesday, as an unexpected drop in durable goods orders largely offset bigger-than-expected rises in consumer spending and personal income last month along with a larger drop in jobless claims last week.

In other markets, the dollar fell against the euro and the yen, while Treasuries were lower, with the 10-year note recently off 4/32 to yield 3.319%.

The action came after reports showed last week's initial jobless claims fell by more than predicted and spending by Americans bounced back in October as their incomes rose slightly more than expected. Still, the boost from those reports was limited as the Commerce Department also said on Wednesday that demand for long-lasting goods unexpectedly fell in October, and a barometer of capital spending by businesses tumbled in another sign of the recovery's sluggishness.

Still to come on Wednesday are reports on new home sales, as well as consumer sentiment and the Kansas City Fed Manufacturing Survey. The Dow Jones Industrial Average was three points at 10436 in recent trading.

- I-Net Bridge

 
 
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