Fin24

JSE softer on global concerns

2012-12-04 19:02

Johannesburg — The JSE closed softer on Tuesday with the all share index dipping below the 38 000 points level‚ with markets still concerned about the US fiscal cliff and awaiting further developments thereon.

At 17:00‚ the All Share [JSE:J203] index was down 0.15% to 37 991.31 points.

Gold stocks and resources weighed on the bourse‚ shedding 1.53% and 0.81% respectively‚ while platinums provided some upside closing 0.65% firmer.

“Our markets are possibly weaker due to the softer than expected PMI figures out of the US last night still filtering through to us and on uncertainty about the fiscal cliff in the US‚” said Oliver Russell‚ trader at GT247.com in Johannesburg.

London’s FTSE 100 was flat (-0.01%) at 16:49 local time and the Dow Jones Industrial index had inched slightly higher adding 0.24% at the same time.

Investors are concerned that the dispute between Republicans and Democrats in the US may go unresolved into the new year‚ triggering a series of tax increases and government spending cuts known as the fiscal cliff‚ Dow Jones Newswires reported.

In the latest twist‚ the White House immediately rejected a deficit-reduction proposal made by House Republicans late on Monday that called for $800 billion in increased tax revenue‚ half of what President Barack Obama proposed.