Money SA economy
The JSE posted losses on Friday, despite better than expected US GDP data and comments by US Federal Reserve Chairman Ben Bernanke indicating he is ready to do whatever is required to support an economic recovery.
By 5pm local time the JSE all share index had fallen 0.50%, with resources sliding 1.20%, gold counters losing 0.46%, and platinum stocks declining 2.21%. Banks shed 0.51%, financials gave up 0.07%, and industrials fell 0.07%. Gold was quoted at $1,241.40 a troy ounce from $1,239.22/oz at the JSE's previous close, while platinum was at $1,532.00/oz from $1,531.50/oz before.
A trader said the market was skittish and sensitive to economic indicators. "It overreacts to the positive news and overreacts to the negative data," the trader said of the prevailing mood in the market.
He said investors focused on US GDP figures.
Dow Jones Newswires reports that US stocks rose on Friday as investors expressed relief after Federal Reserve Chairman Ben Bernanke said he is ready to do what it takes to support an economic recovery, and the government's revised estimate of second-quarter economic growth came in better than feared.
Bernanke's comments, which came as he kicked off a two-day meeting of the world's top central bankers, provided some reassurance as he said he expects the US economy to continue growing in 2011 and subsequent years, signalling further Fed action may not be needed.
Still, the Fed chairman stressed the US central bank would act if "unexpected developments" cause the recovery to falter or a dangerous deflationary spiral sets in.
