Johannesburg - The JSE was around 0.7% lower in early trade on Wednesday, taking its lead from overseas markets which were also down. Investor nervousness about the strength of the global economic recovery was again a focus for global markets.
At 09:15 local time the JSE all share index had declined 0.69% as resources gave up 0.95% and platinum miners shed 1.3%. However, golds were a bright spot, adding 0.59%. Banks declined 0.79%, financials eased 0.61% and industrials gave up 0.47%.
The rand was bid at 7.66 to the dollar from 7.61 at the JSE's last close. Gold was quoted at $1 194.41 a troy ounce at $1 192.88/oz at the JSE's previous close, while platinum was at $1 511/oz from $1 507.50/oz at the JSE's last close.
Despite a firmer close on Wall Street overnight, when the Dow edged up 57 points or 0.6%, ending a seven-session run of losses, Asian shares were lower on Wednesday morning.
The Dow had given up most of its earlier gains towards the closing bell after weak US ISM service-sector data raised familiar concerns over the US recovery.
Dow Jones Newswires reported that ANZ bank said in a briefing: "Analysts had expected US growth to moderate in the latter part of 2010 as the support provided by fiscal stimulus and inventory rebuilding faded. It now appears that the headwinds posed by slowing global growth will be another restraint. Before we get too carried away we need to remember that the modest deterioration evident in global gauges over the last few weeks is more consistent with a slower growth story rather than a double dip.
Asian shares were mostly lower in choppy trade Wednesday as weak US data renewed concerns about the strength of the global economic recovery, while weaker Chinese stocks weighed on regional sentiment.
In Japan the Nikkei closed down 0.63%, while in Hong Kong, the Hang Seng was last down 1%.
- I-Net Bridge