JSE turns red on Chinese trade data

Johannesburg - The JSE extended losses on Tuesday, ending sharply weaker in line with global markets, which turned south following downbeat trade data from China.

The market is awaiting the US Federal Reserve's latest monetary policy statement, a trader said.

The JSE all share index closed down 1.29%, as the platinum index fell 1.56%, the resources index dropped 2.14% and gold shares lost 0.23%. Banks declined 1.12%, financials gave up 0.69% and industrials fell 0.75%.

The rand was bid at R7.21 to the dollar unchanged from the JSE's close on Friday. Gold was quoted at $1 194.74 a troy ounce from $1 206.57/oz at the JSE's previous close, while platinum was at $1 540.50/oz from $1 567.00/oz before.

The trader said the local market fell as global sentiment soured after China released poor trade data.

The July trade data showed Chinese imports growth slowing more than expected, raising concerns about the country's economic outlook for the rest of the year.

"The question is about how China lands in the second half of the year: will it be a soft or a hard landing," the trader said.

He said the market could see more sell-offs depending on what the Fed said in its policy statement.

Dow Jones Newswires reported that US stocks slid on Tuesday in jumpy trading as disappointing Chinese data added to the anxiety of investors waiting for guidance from the Federal Reserve.

The Dow Jones Industrial Average fell 111 points in morning trading as data continued to underscore slowing growth both in the US and overseas.  

Disappointing growth in Chinese imports, the first drop in US productivity in 18 months and a decline in small business leaders' optimism underscored the lacklustre global economic recovery.

  - I-Net Bridge