Johannesburg and New York - The JSE ended slightly lower on Tuesday, after a day of mild swings and volatility.
A local trader said: "I'm not too surprised to see a bit of a
down day. The news from Europe has been somewhat encouraging and further
attention will be paid to this area going forward."
He said that the earnings period in the US was approaching and
this would also give further direction. Recent news released out of Europe and the US has been more positive, and key European figures' willingness has boosted sentiment.
"US results are expected to be lower, but if it's much worse than expected markets may drop down."
By 17:00 local time, the JSE
All Share [JSE:J203] index had weakened
0.26% to 30803.88 points. Platinum miners ended 1.40% lower and
resources declined 0.58%, while gold stocks ended flat (-0.02%).
Banks dipped 0.33%, and financials dwindled 0.29%, while industrials remained static (-0.02%).
The rand was bid at 7.90 to the dollar, from 7.82 at the JSE's
close on Monday. Gold traded at $1 663.86 a troy ounce from $1 662.21/oz at the JSE's previous close, while platinum was at $1 515.50/oz, from $1 518/oz previously.
US stocks rose modestly on Tuesday as markets awaited a vote by Slovakia on expanding the eurozone rescue fund, the latest twist in Europe’s financial debacle.
The euro fell as investors waited for Slovakia to become the last of 17 EU member states to vote to boost the size and powers of the European Financial Stability Facility.
The vote in Slovakia’s parliament may not pass until later this week, complicating access to funds that could stem the crisis.
That may rattle markets through the week as it adds an element of uncertainty to an already anxious environment.
Global stocks and the euro have rallied sharply on rising hopes that Europe will recapitalise struggling banks and bail out debtor nations.
“It seems like the vote is a little in doubt. Everyone is on hold waiting on what’s happening with the European Union,“ said Ronald Simpson, managing director of global currency analysis at Action Economics in Tampa, Florida.
Global stocks, as measured by MSCI’s All-Country World index, were up 0.2%. The index has rallied recently on improved sentiment, particularly after a weekend pledge byGerman and French leaders to come up with a plan to tackle the debt crisis.
In Monday’s trading, US stocks jumped 3%, lifting the S&P 500 above its 50-day moving average the first time since late July, though the gains came on thin volume due to the Columbus Day holiday.
The benchmark S&P is trading near the upper end of its recent range, and it is unclear whether institutional buyers will support the market further or if it will retreat.
“I have not seen yet a tremendous amount of long-only (fund) participation in this. It’s mostly hedge fund-to-hedge-fund pinging stocks back and forth,” said Sam Ginzburg, head of capital markets at First New York in New York.
The Dow Jones industrial average was down 9.08 points, or 0.08%, at 11 424.10. The Standard & Poor’s 500 Index was up 0.67 points, or 0.06%, at 1 195.56. The Nasdaq Composite Index was up 13.50 points, or 0.53%, at 2 579.55.
The FTSEurofirst 300 index of top European shares was down 0.5%, after rising 1.7% on Monday.
The euro slipped 0.2% at $1.36280 against the dollar.
In commodity markets, oil prices were mixed, with US crude down half a percent at below $85 per barrel while Brent oil in London rose half a percent to hover around $109 per barrel.