Picture: 123RF/iloveotto
Picture: 123RF/iloveotto

Clear signs of compromise between the US and China in their ongoing trade dispute lifted the JSE on Wednesday morning, with the local bourse extending gains from its recovery on Tuesday.

China's top trade negotiator has reportedly told US officials that China will reduce vehicle tariffs and resume soyabean purchases, raising hopes that issues can be settled ahead of a March 1 deadline.

Asian and European markets pushed higher, with the JSE following suit, led by Naspers and banks.

At 10am the all share was up 0.51% at 51,449.9 points and the top 40 0.58%. Banks rose 1.38% and industrials 0.74%.

The JSE had also performed well on Tuesday, lifted by positive manufacturing and mining data, as well as the resumption of US-China trade talks.

It was, however, little moved by Wednesday's data, although consumer inflation rose a little higher than expected. Consumer inflation, as measured by the annual change in the consumer price index (CPI), rose 5.2% in November, slightly more than the Trading Economics consensus forecast of 5.1%.

Event risks, however, continue to loom, with UK Prime Minister Theresa May continuing to seek further compromises from the EU on Brexit, after failing to garner enough support for her draft divorce agreement.

May is also facing a possible vote of no-confidence from British legislators.

"Somehow, I feel we're little more than a headline or two away from sending the market back into the tank. Buckle in, it will be a busy London session," Oanda analyst Stephen Innes said.

US inflation data is due at 3.30pm local time, and will be closely watched as investors gauge the likelihood of multiple interest-rate increases from the US Federal Reserve in 2019.

Naspers added 1.61% to R2,896.88.

Tencent’s subsidiary, Tencent Music, starts trading as a separately listed company on the New York Stock Exchange later on Wednesday.

Diversified miner Glencore lost 1.07% to R50.82 and Anglo American 0.53% to R295.95.

Richemont fell 1.12% to R92.16.

Standard Bank gained 2.02% to R170.49.

Telkom jumped 4.18% to R60.36 and MTN 2.21% to R85.47.

Gold was flat at $1,243.02 an ounce and platinum at $787.09. Brent crude was 0.27% higher at $60.74 a barrel.

gernetzkyk@businesslive.co.za