JSE lifts as hope of trade truce boosts global stocks
Top US officials may be headed for Beijing to resume trade negotiations next week, according to reports
The JSE opened higher on Tuesday morning, in line with most global stocks, after reports that the US and China may soon resolve the prolonged trade war. Investors are concerned about the effect a protracted trade war may have on global growth.
Top US officials may be headed for Beijing to resume trade negotiations next week, after US President Donald Trump and Chinese President Xi Jinping agreed to revive talks following the G20 summit in June, Politico reported.
“There is visible willpower to seal a deal from Chinese companies, as some even offered to buy US farm products to charm Donald Trump and ease the tension between him and Xi,” London Capital Group senior market analyst Ipek Ozkardeskaya said in a note.
PODCAST | Business Day Spotlight - "It's a bully tactic" says Chinese Ambassador
“But the possibility of a full deal remains low as there are important discrepancies between the two countries’ expectations and both leaders seem [unlikely] to compromise on their view.”
Earlier, the Shanghai Composite gained 0.45% and Hong Kong's Hang Seng 0.33% while Japan's Nikkei 225 had fallen 0.23%. In Europe, the FTSE 100 had gained 0.5%, France's CAC 40 0.32% and Germany's DAX 30 0.77%.
At 10.15am, the JSE all share had gained 0.52% to 58,314.2 and the top 40 was 0.53% higher. Banks had gained 0.81% and financials 0.62%.
Reinet had gained 0.98% to R243.76, despite saying on Tuesday that its net asset value decreased 6.4% to almost €4.52bn for the quarter ended June.
Kumba Iron Ore earlier gained 1.58% to R497.99 after it said on Tuesday that its shareholders will receive a dividend of R30.79 per share for the six months ended June.
Mondi was up 3.84% to R320.05 after the company said on Tuesday it expected underlying earnings before interest, tax, depreciation and amortisation (editda) for the six months ended June to be above that of the comparable prior year period of €852m.