Stronger opening for JSE as US-Mexico deal helps global sentiment
The US and Mexico have reached an agreement to curb illegal migration from the latter to the US
The JSE opened higher on Monday tracking global markets after the US and Mexico reached a deal on Friday, halting the imposition of a 5% tariff on imports from Mexico.
Following negotiations last week, US President Donald Trump announced that the US and Mexico had reached an agreement to curb illegal migration from the latter to the US. The neighbouring countries agreed to expand the asylum programme and to deploy more security forces, Reuters reported.
In May, the US had threatened to impose a 5% tariff on Mexican imports on June 10 if Mexico did not address illegal migration.
The deal boosted global stocks: the Hong Kong's Hang Seng had gained 2.29%, the Shanghai Composite 0.86% and Japan's Nikkei 225 0.53%. In Europe, the FTSE 100 was up 0.58% and France's CAC 40 0.48%.
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By 09.50am, the JSE all share rose 0.65% to 58,479.4 points and the top 40 was up 0.79%. Industrials and general retailers led gains, up 0.93% and 1.37%, respectively.
Gold miners had fallen 3.4% and platinum miners 2.16%, both shedding last week's gains.
Among gold miners, Harmony slumped 5.68% to R26.89. AngloGold Ashanti had fallen 3.45% to R215.42, Sibanye 3.24% to R14.35 and Gold Fields 3.11% to R73.41.
Naspers was up 1.47% to R3,510.77, after Hong Kong-listed subsidiary Tencent climbed 3.45% earlier.
Woolworths had gained 2.23% to R47.23 on Monday morning after the retailer announced that the former CEO of Richemont's Alfred Dunhill unit, Christopher Colfer has been appointed as an independent nonexecutive director.
Nepi Rockcastle was little changed at R125.90. The property group said on Monday that its ordinary shares would be traded on the A2X from June 18.
No local data is expected on Monday. The UK is expected to release balance of trade, GDP, manufacturing and industrial production figures for April.