JSE lower on global jitters

By 12:00 the JSE all share index down 0.45%, with resources 1.15% lower and platinum miners weakening 1.2%. Gold miners however managed to find 1.65%. 

Banks were flat (0.03%) with financials off 0.24%. Industrials were also flat at 0.09%. 

The rand was bid at 7.47 to the dollar from 7.341 at the JSE's close on Monday. Gold was quoted at $1 186.49/oz a troy ounce from        $1 182.74/oz at the JSE's last close. Platinum was at $1,718/oz from $1,723.50/oz at the JSE's last close. 

"I think the major thing affecting the market at the moment is that the Chinese have started pulling down the economy. The Chinese economy is cooling down. 

"Another factor still affecting the local market is the mining tax that Australia is planning to introduce which has affected BHP Billiton's share
price negatively and is weighing on the resources sector," a local equities trader said.        

Dow Jones Newswires reported that European stocks were slightly lower Tuesday, taking their lead from a downbeat Asian session, with basic resources leading the decline. 

Basic resource stocks suffered the brunt of the selling, as investors got their first chance to react to news that Australia plans to impose a new tax on the mining sector. Rio Tinto fell 4.1%, while BHP Billiton lost 2.9%. 

Meanwhile, concerns about sovereign debt lingered, despite the launch of the Greek rescue package, which is set to be available by the end of this week. Market participants were sceptical about whether the country will be able to sustain the austerity measures it must impose in return for the bailout, particularly in light of the current social unrest. At the same time, traders cited ongoing fears that the package will do little to contain the debt crisis in the region. 

Asian markets ended mostly lower Tuesday, with Chinese stocks slumping to their lowest level in nearly seven months as trading resumed for the first time after the central bank raised banks' reserve requirements. 

The weak sentiment in Shanghai also rubbed off on property shares listed in Hong Kong and helped erase early gains there. Stocks in Sydney extended losses after the Reserve Bank of Australia raised interest rates and resource stocks fell more on the government's tax proposals for the sector. 

"Sentiment is shifting with the markets choosing to focus on the bad news rather than good news [such as earnings] like [they had] in the weeks before," said Phillip Securities analyst Phua Ming-Weii in Singapore. "This hints of a shift back toward risk aversion." 

Australia's S&P/ASX 200 shed 1.0%, South Korea's Kospi slipped 0.1%, Hong Kong's Hang Seng Index declined 0.2%, Taiwan's Taiex fell 0.3% and India's Sensex was down 1.3% in afternoon trading. 

Meanwhile, US stocks are expected to start lower Tuesday, cooling a little after the rally in the previous session, says David Morrison at GFT.
Adds the initial exuberance following the IMF/EU Greece rescue package is ebbing, and the euro is again under pressure versus the dollar. Morrison calls the Djia down 30 points at 11 132 and the S&P 500 down four at 1 198.

In the meantime, the earnings season continues, with Mastercard, Merck and Pfizer reporting, amongst others. Factory orders and pending home sales are at 14:00 GMT.