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Johannesburg - The JSE posted losses on Friday, despite better than expected US GDP data and comments by US Federal Reserve Chair Ben Bernanke indicating he is ready to do whatever is required to support an economic recovery.
By 17:00 local time the JSE all share index had fallen 0.50%, with resources sliding 1.20%, gold counters losing 0.46%, and platinum stocks
declining 2.21%. Banks shed 0.51%, financials gave up 0.07%, and industrials fell 0.07%.
The rand was bid at 7.29 to the dollar from 7.30 at the JSE's close on Thursday. Gold was quoted at $1 241.40 a troy ounce from $1 239.22/oz at the JSE's previous close, while platinum was at $1 532.00/oz from $1 531.50/oz before.
A trader said the market was skittish and sensitive to economic indicators. "It overreacts to the positive news and overreacts to the negative data," the trader said of the prevailing mood in the market.
He said investors focused on US GDP figures.
Dow Jones Newswires reports that US stocks rose on Friday as investors expressed relief after Federal Reserve Chairman Ben Bernanke said he is ready to do what it takes to support an economic recovery, and the government's revised estimate of second-quarter economic growth came in better than feared.
The Dow Jones Industrial Average was rose 100 points, or 1%, to 10087 in recent trading, recovering from a dip into negative territory that had followed a guidance cut from Intel.
Bernanke's comments, which came as he kicked off a two-day meeting of the world's top central bankers, provided some reassurance as he said he expects the US economy to continue growing in 2011 and subsequent years, signalling further Fed action may not be needed.
Still, he stressed the US central bank would act if "unexpected developments" cause the recovery to falter or a dangerous deflationary spiral sets in.