Money SA economy
The JSE surrendered earlier gains at noon on Tuesday in response to a gloomy Fitch Ratings, which stated the UK's fiscal challenge was "formidable".
Market watchers said the global ratings agency's special report was the main reason why the local market had declined.
By 12:04 the JSE all share index had lost 0.43%, but resources were 0.09% stronger and gold miners rose 0.92%. Platinum miners shed 0.44%. Banks were 1.35% weaker, financials eased 1.19% and industrials gave up 0.56%. Gold was quoted at US$1,248.95 a troy ounce from US$1,232.01/oz at the JSE's previous close, while platinum was at $1,522.20/oz from $1,506.50/oz at the JSE's last close.
Fitch on Tuesday described the UK's fiscal challenge as "formidable", according to Dow Jones Newswires, and said that "following an unprecedented economic and financial shock, the scale of the UK's AAA/stable outlook fiscal challenge is formidable and warrants a strong medium-term consolidation strategy - including a faster pace of deficit reduction than set out in the April 2010 budget."
Dow Jones Newswires reports that US stock market futures shifted between negative and positive territory on Tuesday, with a warning on the UK from Fitch weighing against relatively upbeat comments from Federal Reserve chairman Ben Bernanke who said he didn't expect to see a double-dip recession in the US.
On the JSE, Anglo (AGL) was down 1.57 rand to 275.00 rand, but BHP Billiton (BIL) gained 35 cents to 195.85 rand and Sasol (SOL) added 2.42 rand to 272.23 rand.
