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Johannesburg - The JSE was flat in volatile trade noon trade on
Thursday as concerns lingered over possible contagion from the European debt crisis.
Overnight the Dow Jones industrial average was down 58.6 points and Asian markets ended sharply lower too. But European markets were generally firmer in noon trade.
By 12:00 the JSE all share index was flat (+0.09%), with resources down 0.22%, platinum miners 0.71% lower and gold miners 0.96% weaker. However, banks were up 1.08% and financial were 0.44% stronger, with industrials up 0.23%.
The rand was bid at R7.62 to the dollar from R7.61 at the JSE's close on Wednesday. Gold was quoted at $1 178.78 a troy ounce from $1 172.29/oz at the JSE's last close. Platinum was at $1 676.50/oz from $1 650/oz at the JSE's last close.
"The market is very volatile and extremely difficult to call at the moment. However, we've seen a turnaround in some sectors that were oversold and I suspect that some bargain hunters are now coming into the market as some of the stocks are at levels that are starting to look attractive," a local equities trader said.
Dow Jones Newswires reported that European stock markets have been relatively calm on Thursday, with gains in the basic resources sector helping to offset weakness in financial services stocks.
But the euro has weakened on Thursday, and the credit and sovereign debt markets show further signs of stress, as the Greece's debt crisis and the associated contagion has continued to weigh on investors' confidence. The outcomes of the upcoming European Central Bank meeting and the UK election are also creating uncertainty.
"The crisis is now spreading to other so-called peripheral countries. Portugal is leading the way but sovereign spreads have significantly widened in Spain, Ireland and Italy, highlighting the risks of an indiscriminate contagion effect," said BNP Paribas.
Asian stocks and most regional currencies excluding the Japanese yen fell sharply on Thursday on deepening worries about European sovereign debt and fears that Beijing's tightening policies might slow Chinese economic growth.
Investors were also spooked by a warning by Moody's Investors Service on Wednesday that it could cut Portugal's Aa2 sovereign rating by up to two notches.
"It's just the fear of the unknown. People are speculating on the impact of Greece not accepting the bailout, and whether the impact rolls over to other European nations such as Spain and Portugal," said Andrew Sullivan, a sales trader at Main First Securities, referring to opposition in Greece to the austerity measures. "There are also worries that China may slow its growth and of Europe, one of its largest export markets, dipping back into recession."
Japan's Nikkei fell 3.3% on reopening after a three-day holiday, while China's Shanghai Composite tumbled 4.1% to 2,739.70, its lowest finish in more than eight months.
Australia's S&P/ASX 200 shed 2.2%, South Korea's Kospi lost 2.0%, Hong Kong's Hang Seng Index dropped 1.0%, Taiwan's Taiex gave up 1.5% and India's Sensex dropped 0.6% in afternoon trade. Dow Jones Industrial Average futures were 17 points lower in screen trade.
Meanwhile US stocks are called to open slightly higher on Thursday, following Europe's lead. David Morrison at GFT says the markets are continuing to take a "euro-centric view" and the focus continues to be on events surrounding the sovereign debt situation. A cautious tone will doubtless prevail during trading. Morrison calls the DJIA up 12 points at 10880 and the S&P 500 up one point at 1168. Meanwhile, US initial jobless claims will be eyed.
- I-Net Bridge
Overnight the Dow Jones industrial average was down 58.6 points and Asian markets ended sharply lower too. But European markets were generally firmer in noon trade.
By 12:00 the JSE all share index was flat (+0.09%), with resources down 0.22%, platinum miners 0.71% lower and gold miners 0.96% weaker. However, banks were up 1.08% and financial were 0.44% stronger, with industrials up 0.23%.
The rand was bid at R7.62 to the dollar from R7.61 at the JSE's close on Wednesday. Gold was quoted at $1 178.78 a troy ounce from $1 172.29/oz at the JSE's last close. Platinum was at $1 676.50/oz from $1 650/oz at the JSE's last close.
"The market is very volatile and extremely difficult to call at the moment. However, we've seen a turnaround in some sectors that were oversold and I suspect that some bargain hunters are now coming into the market as some of the stocks are at levels that are starting to look attractive," a local equities trader said.
Dow Jones Newswires reported that European stock markets have been relatively calm on Thursday, with gains in the basic resources sector helping to offset weakness in financial services stocks.
But the euro has weakened on Thursday, and the credit and sovereign debt markets show further signs of stress, as the Greece's debt crisis and the associated contagion has continued to weigh on investors' confidence. The outcomes of the upcoming European Central Bank meeting and the UK election are also creating uncertainty.
"The crisis is now spreading to other so-called peripheral countries. Portugal is leading the way but sovereign spreads have significantly widened in Spain, Ireland and Italy, highlighting the risks of an indiscriminate contagion effect," said BNP Paribas.
Asian stocks and most regional currencies excluding the Japanese yen fell sharply on Thursday on deepening worries about European sovereign debt and fears that Beijing's tightening policies might slow Chinese economic growth.
Investors were also spooked by a warning by Moody's Investors Service on Wednesday that it could cut Portugal's Aa2 sovereign rating by up to two notches.
"It's just the fear of the unknown. People are speculating on the impact of Greece not accepting the bailout, and whether the impact rolls over to other European nations such as Spain and Portugal," said Andrew Sullivan, a sales trader at Main First Securities, referring to opposition in Greece to the austerity measures. "There are also worries that China may slow its growth and of Europe, one of its largest export markets, dipping back into recession."
Japan's Nikkei fell 3.3% on reopening after a three-day holiday, while China's Shanghai Composite tumbled 4.1% to 2,739.70, its lowest finish in more than eight months.
Australia's S&P/ASX 200 shed 2.2%, South Korea's Kospi lost 2.0%, Hong Kong's Hang Seng Index dropped 1.0%, Taiwan's Taiex gave up 1.5% and India's Sensex dropped 0.6% in afternoon trade. Dow Jones Industrial Average futures were 17 points lower in screen trade.
Meanwhile US stocks are called to open slightly higher on Thursday, following Europe's lead. David Morrison at GFT says the markets are continuing to take a "euro-centric view" and the focus continues to be on events surrounding the sovereign debt situation. A cautious tone will doubtless prevail during trading. Morrison calls the DJIA up 12 points at 10880 and the S&P 500 up one point at 1168. Meanwhile, US initial jobless claims will be eyed.
- I-Net Bridge
