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Friday, January 8, 2016

JSE higher as Chinese recovery restores calm to markets

THE JSE was higher at midday on Friday as a recovery in Chinese equities restored a smidgen of calm to global markets.

 Picture: MICHAEL ETTERSHANK
Chinese shares ended their session in the black following news from authorities there that the circuit-breaker mechanism had been suspended.
The controversial mechanism — which was created to shut down trade if the stock market fell 7% or more — has been blamed for triggering a stampede that wiped $1.1-trillion off global stock markets this week.
At 12pm, the all share was up 0.65% to 48,366.70 points and the blue-chip top 40 index had risen 0.75%.

Resources led the gains rising 0.72%. Industrials added 0.66% and financials climbed 0.63%. The gold index was down for the first time this week, falling 1.67%.
In Europe, major stock markets were also firmer.
At noon (CAT), the FTSE 100 was up 0.67%, the Paris CAC 40 rose 0.45% and the German DAX 30 gained 0.62%.

Among individual shares on the JSE, Anglo American fell 2.51% to R56, while ArcelorMittal SA soared 23.06% to R5.55.
Harmony tumbled 8.43% to R21.50.
Barclays Africa added 3.35% to R134.36, while Woolworth gave back 2.66% to R94.03.
Group Five fell 4.10% to R18.70, Telkom jumped 3.39% to R59.45 and Illovo Sugar climbed 4.83% to R16.28.

Focus later in the afternoon will fall on US nonfarm payrolls data.
Dow Jones Newswires said the employment report would provide the first important measure of how the world’s largest economy fared in 2015, and provide clues about momentum in the labour market heading into 2016.
Economists surveyed by The Wall Street Journal have estimated seasonally adjusted payroll growth of 210,000 during December, and are expecting the unemployment rate to edge down to 4.9%.

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