JSE gains as US and China prepare to sign trade deal
China’s vice-premier Liu He is expected to travel to the US on Monday
The JSE started the week firmer on Monday, tracking positive Asian markets ahead of the expected signing of a phase-one trade deal between the US and China this week.
China’s vice-premier Liu He is expected to travel to Washington on Monday, ahead of the possible signing of a phase one deal later this week.
This will mark progress in the protracted trade war between the two biggest economies.
Bloomberg reported that the deal would involve some tariff relief, increased Chinese purchases of US agricultural goods and changes to intellectual property and technology rules.
Meanwhile, Washington and Beijing have agreed to hold semi-annual talks aimed at resolving disputes and to push for reform.
The signing of the trade deal between the US and China was important for determining what the global economy, and markets, could look like in the next 18-24 months, London Capital Group head of research Jasper Lawler said in a note.
Earlier, the Shanghai Composite was up 0.75%, Hong Kong’s Hang Seng 1.11%.
In Europe, France’s CAC 40 was up 0.34% and the German DAX 30 was 0.18% higher.
Gold miners continued to feel some pressure on Monday morning, falling 0.37%. The platinum index was up 0.35% and the resources index 0.38%.
At 12.15pm, the JSE all share was up 0.31% to 57,660.9 points and the top 40 was up 0.37%. Banks had slipped 0.56%.
Gold was down 0.83% to $1,549.10/oz and platinum 0.86% to $967.63/oz. Brent crude was little changed at $64.94 a barrel.
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