Money SA economy
The JSE remained weak, but was off the session's worst levels in noon trade on Monday as global markets stabilised after early falls in the session amid continued uncertainty over Europe's economic woes.
By 12pm the JSE all share index was 0.37% lower, with resources flat at -0.08%, platinum miners up 0.23% and gold miners up 0.81%. Banks however were down 0.57%, financials were 0.61% weaker and industrials 0.64% lower. Gold was quoted at $1,232.47/oz from US$1,224.29/oz at the JSE's last close.
Platinum was at $1,691/oz from $1,715.50/oz at the JSE's last close.
"We're basically just tracking overseas markets at the moment. It has turned around quite nicely and I wouldn't be surprised if it ends in the green as US futures are also looking better," a local equities trader said.
Dow Jones Newswires reports that European stocks and the euro stabilized after early falls on Monday, despite ongoing fears about the euro-zone's economic growth prospects.
"The inability of the bailout package to restore confidence is not altogether surprising, and it wasn't helped by reports that President Sarkozy of France allegedly threatened to pull France out of the euro last week if he didn't get a bailout agreement, which, given the current fragile sentiment, is tantamount to a vote of no confidence in the project," said Michael Hewson, market analyst at CMC Markets.
"There are fears that the tough austerity measures now being implemented will condemn some parts of Europe to negative growth for years," he added.
Meanwhile, US stocks are called to open lower Monday, as U.S. stock index futures are under pressure and currently indicate a weaker open, despite a higher session in Europe.
Asian stock markets were sharply lower on Monday on fears that sovereign debt troubles in the euro-zone will drag on global economic growth, with resource sector shares and exporters hit particularly hard.
On the JSE, Anglo slipped 32 cents to R288.49 while BHP Billiton lost 31 cents to R210.59. Sasol declined R3.36 or 1.19% to R278.14.
