JSE slides on global economic gloom

Johannesburg - The JSE edged down in the morning session on Tuesday as it tracked gloomy global markets, with investors increasingly doubtful about the global economic outlook.

By 09:19 local time the JSE all share index had lost 1.31%, with resources 2.08% weaker, platinum miners off by 1.68% and gold miners dropping 0.77%. Banks shed 1.30%, financials slid 1.05%, and industrials edged down 0.79%.

The rand was bid at R7.36 to the dollar from R7.32 at the JSE's close on Monday. Gold was quoted at $1 235.20 a troy ounce from $1 236.40/oz at the JSE's previous close, while platinum was at $1 512.00/oz from $1 531.50/oz before.

Kevin Algeo, portfolio manager at Imara SP Reid, said the JSE was down almost 400 points at the opening bell after closing higher yesterday.

Algeo said Reserve Chairperson Ben Bernanke's comments and the Bank of Japan's policy move failed to shore up confidence about the global economy.
 
Dow Jones Newswires reports that Asian stock markets were lower on Tuesday, as regional technology stocks fell, while the Tokyo market dropped sharply as investors continued to fret about the yen's strength.

Wall Street's fall and soft US data on Monday, including weak readings on personal income and Texas-area manufacturing activity, hurt market sentiment.

Markets were looking past last week's comments from Federal Reserve Chairperson Ben Bernanke that the Fed would act decisively to prevent the US economy from sliding sharply.

On Monday, the Dow Jones Industrial Average declined 1.4% to 10 009.73.

Japan's Nikkei Stock Average closed 3.55% lower on Tuesday, and Hong Kong's Hang Seng Index was last 1.34% weaker.

European stocks opened lower on Tuesday, taking their cue from weak US and Asian sessions, amid ongoing doubts about the sustainability of the global economic recovery.

In London, the FTSE 100 index was 1.34% down.