Money SA economy
The JSE opened in negative territory on Tuesday in line with global markets, as investors begin to unpack the long-term considerations of the European rescue package.
A local dealer said the red start was not unexpected following yesterday's large gains.
By 9.20am the JSE all share index was off 0.71%, with resources 1.11% softer, and platinum miners 1.79% weaker. Gold miners added 1.33%. Banks were off 0.19%, financials shed 0.45% and industrials were 0.40% lower. Gold was quoted at $1 1207.95/oz from $1 200.17/oz at the JSE's last close. Platinum was at $1 683.50/oz from $1 692/oz at the JSE's last close.
European stocks opened lower on Tuesday, along with a weaker euro, as investors digest the European rescue package, Dow Jones Newswires reported.
The agreement on Monday of a €750 billion bailout prompted sharp gains among global stock indexes, and a sharp rise in the euro, as investors expressed relief over fears the EU would not be able to contain Greece's sovereign-debt issues.
However, "after the initial euphoria, markets seem to be quickly turning to the damage to growth (and ECB rate) prospects likely to be caused by a further round of fiscal tightening," said Adam Cole at RBC Capital Markets.
On Wall Street Monday, stocks posted their biggest one-day gains in a year on Europe's bailout package which lifted a broad range of equities.
In Asia early Tuesday, stock markets were lower as traders examined the EU's bailout package.
