JSE lifts marginally as US-Mexico deal bolsters sentiment
Risk-on trade as a result of an immigration deal between the US and Mexico continues to buoy equities, although risk events loom
The JSE continued to benefit from Mexico's agreement to radically overhaul its immigration system in the wake of US demands on Tuesday, with diversified miners faring best.
Mexico's agreement to try to stem illegal immigration into the US has boosted sentiment so far this week. However, the prospect of an escalation in the US-China trade war continues to threaten sentiment, with US President Donald Trump on Monday reiterating threats to impose further tariffs on China should President Xi Jinping not attend a Group of 20 (G20) summit later in June.
Global equities were also being supported by the prospect of loose monetary policy out of the US, Stephen Innes, managing partner at Vanguard Markets, said in a note. Although the US-Mexico issue had been resolved, people were left wondering if tariffs would soon be used again to pursue other White House agendas, he said.
Economic data will be watched on Tuesday, with local manufacturing data for April due at 1pm. The consensus is for growth of 1.35% year on year in the first month of the second quarter, according to macroeconomics website Trading Economics.
The rand was faring well on Tuesday, 0.76% firmer at R14.7127/$ at 10.45am.
At the same time the all share was up 0.22% and the top 40 0.19%. The resources index had added 1%, while the food and drug retailers index had lost 0.48%.
Gold was down 0.32% to $1,323.70/oz and platinum 0.35% to $804.59. Brent crude was 0.22% higher at $62.48 a barrel.
Diversified miner BHP gained 1.7% to R353.72 and Anglo American 1.5% to R382.85.
Rand hedge British American Tobacco had gained 0.7% to R570.01.
Mr Price had gained 1% to R209.95.
Stor-Age Property was up 0.73% to R13.84. It said earlier that the value of its property portfolio had risen 56% to R6bn in the year to end-March. It upped its dividend 9.05% to 106.68c a share.