The JSE tracked US and European markets on Tuesday as investors saw several positive signals, with Goldman Sachs Group Inc. the latest to provide positive earnings news.
European markets continued to focus on the UK and as Joshua Mahony, senior market analyst at online trading platform IG, puts it:
“Markets are clearly more optimistic after the UK’s missteps provided a stark warning that an expansionary government stance would simply prolongue the crisis if pitched against a central bank seeking to drive down inflation.”
The UK u-turn resulted in a FTSE rally in the early morning trading, but the index fell back in the afternoon, closing at + 0,24 percent, as the Bank of England confirmed it would start selling its government bond holdings.
The JSE also rallied during the day but fell back in the afternoon. The all share index ended up closing at 0,24%.
Oil prices were fairly flat Tuesday, held back by fears of an economic slowdown from China, announcing it would delay its GDP figures. Gold, silver and platinum prices were down in the late afternoon, while palladium was trading in the green.
In the currency markets, the dollar weakened 0,4% against the rand and was trading at R18.16/$ in the late afternoon.
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