Money SA economy
The JSE surrendered nearly 600 points on Tuesday, its negative tone in line with global markets amid growing tensions between North and South Korea, concern over Europe's financial system and a soft euro, all driving markets lower.
A local trader noted a firmer gold price as nervous investors made a beeline for the safe haven yellow precious metal amid market volatility.
The JSE all share index finished 2.23% weaker, with resources 1.52% worse off and platinum miners 3.54% lower. Gold miners added 2.69%. Banks wavered 3.94%, financials lost 3.06% and industrials were 2.53% softer.
Gold was quoted at $1,198.67 a troy ounce from $1,187.72/oz at the JSE's last close. Platinum was at $1,490.70/oz from $1,529/oz at the JSE's last close.
A local equities trader said: "Markets were hit today by the full report of conflict between North and South Korea, while in Europe news of a potential bailout of a Spanish bank cast further doubts over the financial stability of countries in the euro-zone.
"Local markets tracked very negative sentiment abroad with the FTSE as low as 3.1% at one stage, while the Dow opened more than 2% in the red.
This all got investors worried which led to some risk aversion, and caused a sell-off on global markets," he said.
Dow Jones newswires reports that US stocks plummeted Tuesday as rising political tensions on the Korean peninsula and sharper worries over the European banking system sparked a broad selloff.
Global markets tumbled Tuesday, with Korean stocks falling after a group said Kim Jong-il ordered the North Korean military to be ready for combat.
