Goods are loaded onto a ship in this file photography. The US has agreed to suspend tariffs on Chinese goods that were due to be implemented on Tuesday, while China has agreed to resume imports of US agricultural goods. Picture: 123RF/ANEK SUWANNAPHOOM
Goods are loaded onto a ship in this file photography. The US has agreed to suspend tariffs on Chinese goods that were due to be implemented on Tuesday, while China has agreed to resume imports of US agricultural goods. Picture: 123RF/ANEK SUWANNAPHOOM

The JSE looked set to extend last week’s gains on Monday morning, boosted by optimism that the US and China are making progress in ending their damaging trade conflict.

The bourse had gained on Friday due to optimism a deal was in the offing, which was confirmed after local markets closed.

The US has agreed to suspend tariffs on Chinese goods that were due to be implemented on Tuesday, while China has agreed to resume imports of US agricultural goods.

The deal is the extension of a truce, as no details were given on issues of intellectual property theft, and further US tariffs on China are still scheduled to kick in on December 15, National Australia Bank analyst Tapas Strickland said in a note.

“As such it is still likely trade uncertainty will weigh on economic activity, and the longer the uncertainty lasts the greater the likely impact,” Strickland said.

Positive signs regarding a Brexit deal ahead of the October 31 deadline have also boosted sentiment,

The rand continued to benefit on Monday morning, having firmed 0.33% to R14.7426/$ at 6.20am.

Hong Kong’s Hang Seng was up 1.03% and the Shanghai composite 1.38%.

Gold was down 0.17% at $1,486.08/oz while platinum was up 0.15% to $892.88. Brent crude was down 0.73% to $60.22 a barrel.

WeChat owner Tencent, of which Naspers is the major shareholder via Prosus, was up 1.66% in Hong Kong.

Local focus this week is on retail sales data for August on Wednesday, with little scheduled on Monday regarding corporate or economic releases.

gernetzkyk@businesslive.co.za