Money SA economy
The JSE swung into negative territory at noon on Tuesday after a German bank failed a stress test, stoking fears over the health of the banking sector in Europe.
By noon local time the JSE all share index had fallen 0.49%. Resources lost 0.65%, platinum miners shed 0.20% and gold miners plummeted 1.80%. Banks declined 0.75%, financials gave up 0.46% and industrials slid 0.34%. Gold was quoted at $1 178.01 a troy ounce from $1 179.78/oz at the JSE's previous close, while platinum was at $1 501.50/oz from $1 503.50/oz/oz before.
A trader said news that German lender Hypo Real Estate had failed a stress test pushed the local market lower, reversing all the gains made in the morning trading session. The trader said the Hypo Real Estate news put the euro under pressure, reflecting renewed uncertainty. There were concerns that more banks could fail the stress test, the trader said.
The increase in the UK's deficit and lower US futures also dampened sentiment.
Dow Jones Newswires reported that Asian markets ended mostly higher on Tuesday as Chinese stocks marched ahead on continued expectations Beijing will avoid further tightening measures as the nation's economic growth moderates.
On the JSE, Anglo American plc reversed earlier gains, falling R4.35 or 1.58% to R270.65. Sasol also lost R1.45 to R278.75. But BHP Billiton stayed higher, adding 58 cents to R211.80.
