JSE enters third day of gains on US-China trade news
China said on Thursday that it would cut additional tariffs on more than 1,700 US goods
The JSE entered its third day of gains on Thursday, tracking global markets after China said it would halve tariffs on some US imports.
China said on Thursday that it would cut additional tariffs on more than 1,700 US imports following the signing of the first phase of a trade deal between the countries, Reuters reported.
The news helped mitigate coronavirus fears, which have dominated market sentiment in recent weeks. The death toll had risen to more than 560 on Thursday.
“The economic threat of the coronavirus has probably been overblown. Even it hasn’t, central banks have signaled they will come to the rescue anyway. Soothing words and actions from global central banks and the World Health Organisation (WHO) saying there is no pandemic [yet] has juiced up markets enough to put coronavirus fears aside, ” London Capital Group head of research Jasper Lawler said.
Earlier, the Shanghai Composite was up 1.72%, Hong Kong’s Hang Seng 2.64% and Japan’s Nikkei 225 2.38%.
At 10.59am, the JSE all share added 0.59% to 57,764.68 points and the top 40 0.62%. Banks were up 2.49% and financials 1.47%.
ArcelorMittal SA said on Thursday that it had swung into a R4.67bn loss in its year to end-December. Its share price was up 3.20% to R1.29.