Money SA economy
The JSE ended 315 points lower on Tuesday tracking softer US stocks amid renewed fears about the strength of Europe's banks following fresh questions about the stringency of stress tests.
A dealer however, noted very thin volumes on the day.
By 5pm local time the JSE all share index had lost 1.13%, with resources down 1.19%. Gold miners however added 0.74%, but platinum miners dropped 0.99%. Banks declined 2.17%, financials shed 1.35% and industrials declined 0.96%. Gold was quoted at $1,257.03 a troy ounce from $1,249.37/oz at the JSE's previous close, while platinum was at $1,557.50/oz from $1,558.50/oz before.
A trader said: "Volume is extremely light today, with some profit taking coming in earlier on. We tracked international markets lower, notably the US when it opened weaker amid concerns for the strength of European banks."
Dow Jones Newswires reported that US stocks declined on Tuesday, led by the financial sector as fresh questions emerged about Europe's bank stress tests.
A Wall Street Journal analysis showed the stress tests understated some lenders' holdings of potentially risky government debt.
"Until some more time elapses to prove that the [European] banking sector can get through the storm, you're going to have these periods of doubt," said Hank Smith, chief investment officer of equities at Haverford Investments.
A bigger-than-expected drop in German manufacturing orders in July also weighed on the euro, as the German data indicated that the recovery in Europe's largest economy is cooling.
Asian stock markets ended mixed Tuesday as exporters helped Japanese shares snap a four-day rally on renewed worries about the yen's strength, while steel makers climbed around the region on expectations for higher Chinese steel prices.
