MARKET WRAP: JSE rebounds in line with US markets, with banks up 3%
Easing global geopolitical tension and a positive research report from Moody's helped lift banks, which also benefited from a softening oil price
The JSE reversed from earlier losses to close higher on Tuesday, lifted in the afternoon by a strong opening for US markets. Earlier in the day international markets were mixed, but geopolitical risks ebbed somewhat, after comments from the Italian Prime Minister that the country's membership within the EU was "unrenounceable". The all share rose 1.48% to 53,241.3 points and the top 40 rose 1.54%. Banks gained 3.74%, financials 2.52% and industrials 1.87%. Gold miners lost 3.03%. Possible conflict between the EU and Italy over that country's budget deficit, and ongoing pressure on Saudi Arabia after the death of a prominent critic, continue to grab headlines. Local factors are currently in the back seat, but retail sales data on Wednesday, and mining production data on Thursday, will be closely watched. Domestic factors are expected to be in greater focus next week with the medium-term budget policy statement, although analysts do not expect major surprises. The expenditure ceiling ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.