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Johannesburg - The JSE tracked higher at its opening on Monday on bargain
hunting following the G20 summit, but lost momentum amid fears of a double dip recession
in Europe, UK and US, a local trader said.
At 09:36 local time the JSE all share index had shed 0.06%, resources were flat at 0.01%. Platinum miners were down 0.01%, while gold miners added 0.19%. Banks gained 0.12%, financials were flat 0.01% firmer with industrials 0.08% in negative territory.
The rand was bid at R7.57 to the dollar, from R7.5894 at the JSE's last close. Gold was quoted at $1 253.75 a troy ounce from at $1,243.57/oz at the JSE's previous close, while platinum was at $1 583.50/oz from $1 564.50/oz at the JSE's last close.
"We opened reasonably firmer but turned negative in line with the Asian markets.
The G20 summit in Canada was on the whole positive but fears of a double dip recession in Europe, UK and US are weighing on the investor sentiment this morning.
Globally, Asian on Monday were mixed in cautious trade as investors considered the lacklustre session on Wall Street on Friday and the communiqué from the G20 nations over the weekend, according to Dow Jones Newswires.
Japan's Nikkei Stock Average was down 0.5%, while South Korea's Kospi was up 0.2%. China's Shanghai Composite Index fell 0.5%, while Hong Kong's Hang Seng Index gained 0.2%.
European stock markets were mixed in early session, with the weekend's Group of 20 communiqué optimistic about debt reduction, despite ongoing worries about global growth following recent downbeat economic data.
Leaders of the G20 nations focused on containing budgets and debt levels, while pledging to stick to the 2012 timetable to implement tougher capital and liquidity standards for banks.
These signs of progress at the G20 meeting over global deficit reduction should be seen as encouraging, said IG Markets, "although this has done little to ease the price of gold, which remains stuck above the $1 250 per troy ounce level, underlying the ongoing popularity of the classic safe-haven investment."
Still, equity-market momentum has faded against the background of renewed growth concerns, including growing evidence of a double-dip in the US housing market as well as fresh worries about the European banking sector, said Credit Agricole Corporate & Investment Bank.
"Whilst a double-dip scenario still seems unlikely, there can be no doubt that austerity measures and the waning of fiscal stimulus measures are beginning to weigh on growth prospects," it said, noting this suggests that the third quarter of 2010 could turn into a period of heightened uncertainty in which equity markets and risk assets will struggle to gain traction.
- I-Net Bridge
At 09:36 local time the JSE all share index had shed 0.06%, resources were flat at 0.01%. Platinum miners were down 0.01%, while gold miners added 0.19%. Banks gained 0.12%, financials were flat 0.01% firmer with industrials 0.08% in negative territory.
The rand was bid at R7.57 to the dollar, from R7.5894 at the JSE's last close. Gold was quoted at $1 253.75 a troy ounce from at $1,243.57/oz at the JSE's previous close, while platinum was at $1 583.50/oz from $1 564.50/oz at the JSE's last close.
"We opened reasonably firmer but turned negative in line with the Asian markets.
The G20 summit in Canada was on the whole positive but fears of a double dip recession in Europe, UK and US are weighing on the investor sentiment this morning.
Globally, Asian on Monday were mixed in cautious trade as investors considered the lacklustre session on Wall Street on Friday and the communiqué from the G20 nations over the weekend, according to Dow Jones Newswires.
Japan's Nikkei Stock Average was down 0.5%, while South Korea's Kospi was up 0.2%. China's Shanghai Composite Index fell 0.5%, while Hong Kong's Hang Seng Index gained 0.2%.
European stock markets were mixed in early session, with the weekend's Group of 20 communiqué optimistic about debt reduction, despite ongoing worries about global growth following recent downbeat economic data.
Leaders of the G20 nations focused on containing budgets and debt levels, while pledging to stick to the 2012 timetable to implement tougher capital and liquidity standards for banks.
These signs of progress at the G20 meeting over global deficit reduction should be seen as encouraging, said IG Markets, "although this has done little to ease the price of gold, which remains stuck above the $1 250 per troy ounce level, underlying the ongoing popularity of the classic safe-haven investment."
Still, equity-market momentum has faded against the background of renewed growth concerns, including growing evidence of a double-dip in the US housing market as well as fresh worries about the European banking sector, said Credit Agricole Corporate & Investment Bank.
"Whilst a double-dip scenario still seems unlikely, there can be no doubt that austerity measures and the waning of fiscal stimulus measures are beginning to weigh on growth prospects," it said, noting this suggests that the third quarter of 2010 could turn into a period of heightened uncertainty in which equity markets and risk assets will struggle to gain traction.
- I-Net Bridge
