JSE down amid global concerns

2012-12-04 10:28

Johannesburg - The JSE remained in negative territory on Tuesday morning‚ with gold miners continuing their slide and only platinum stocks providing some upside.

Global purchasing managers index readings (PMI) were mixed on Monday‚ and markets continued to be concerned about the looming US fiscal cliff of tax increases and spending cuts.

At 9:24am‚ the All Share [JSE:J203] index was down 0.21% to 37‚971.04 points. Gold stocks led the downside‚ dropping 1.37%‚ while platinums clawed back to trade 0.12% in the black.

Eastern markets were also in the red‚ with Japan’s Nikkei 225 closing 0.27% softer and the Hang Seng index off 0.08% in late trade in Hong Kong.

“Monday’s PMI figures from around the globe presented a mixed picture‚” Rand Merchant Bank said in a note.

“The Chinese numbers show the economy is picking up speed again and that the risks of a hard landing have dissipated. The eurozone figure points to an easing of the recession‚ affirming the view of zero rather than negative growth for 2013.

“The disappointment came from the US‚ where a surprise drop saw the number at its lowest in three years‚ perhaps because of super storm Sandy disruptions‚ fears over the fiscal cliff‚ or perhaps because the economy is really weakening again.

“European political noise is positive and Greek debt restructuring negotiations are going well‚ while German politicians have hinted that they could be open to write down their lending to Greece. Spain has formally requested aid for its banks‚” RMB said.

“We have an interlude today in this week’s busy data and event calendar‚ leaving markets to absorb yesterday’s news and continue to fret over the fiscal cliff.”