The JSE had its biggest daily gain in almost three weeks on Monday, tracking gains in European markets, while investors await some direction from the US-China trade negotiations this week.

Washington confirmed on Monday that US and Chinese officials will begin high-level talks on Thursday. The US said intellectual property rights, non-tariff barriers, forced technology transfer, services and agriculture will be on the table.

Bloomberg reported on Monday that Chinese officials have signalled that the range of topics they are willing to discuss at the negotiations has narrowed, with China’s industrial policy and government subsidies now off the table.

“The optimism over these trade talks had already been washed away with last week’s market sell-off. News that China wants to restrict the topics covered by a trade deal with the US is another blow to getting the comprehensive deal desired by the US,” London Capital Group head of research Jasper Lawler said.

Shortly after the JSE closed, the Dow was down 0.12% to 26,542.63 points. In Europe, the FTSE 100 had added 0.71%, France’s CAC 40 0.6% and Germany’s DAX 0.62%.

Earlier, Japan’s Nikkei 225 fell 0.16% while the Shanghai Composite and Hong Kong’s Hang Seng were closed for public holidays.

Locally, SA’s gross reserves rose to a record high in September of $54.86bn from $49.95bn in August, data from the SA Reserve Bank showed on Monday.

Foreigners were net sellers of R11.8bn of equities in the week ended October 4, according to JSE market statistics.

The rand broke a three-day winning streak on Monday, with its one-week implied volatility the third-highest among emerging-market currencies behind the Brazilian Real and Turkish Lira.

At 5.20pm, the rand had weakened 0.31% to R15.1249/$, 0.49% to R16.6332/€ and 0.4% to R18.6378/£. The euro had firmed 0.14% to $1.0997.

Gold was down 0.2% to $1,501.58/oz while platinum added 0.33% to $883.36. Brent crude was up 1.33% to $59.26 a barrel.

The benchmark R186 government bond was weaker with the yield rising 2.5 basis points to 8.205%. Bond prices move inversely to bond yields.

The JSE all share rose 1.34% to 54,714.80 points, its biggest one-day gain in three weeks, and the top 40 1.38%. Gold miners rose 4.7% and resources 2.44%.

AngloGold Ashanti gained 5.31% to R310.98, Gold Fields 5.16% to R82.31, Sibanye 3.78% to R23.87 and Harmony 3.2% to R47.08.

Rand hedges benefited from the weaker currency, with British American Tobacco rising 2.16% to R526.36, AB InBev 2.06% to R1,415.86 and Richemont 1.34% to R105.69. 

Clicks jumped 13.54% to R247.75 after saying on Monday that it expected diluted headline earnings per share to have increased by between 15% and 18% in the year to end-August.

Altron gained 2.34% to R25.84. The company said on Monday that it has been awarded a licence to sell products and service support on behalf of Microsoft.

Impala Platinum gained 1.03% to R104.27. It announced shortly after the market close that it had launched an R11.4bn cash bid for North American Palladium, a Canadian mining company, in a move that could diversify its asset base and reduce its risk.