Johannesburg - The JSE was firmer in quiet noon trade on Tuesday, buoyed by a rise in global risk appetite amid further signs that the world economy is recovering.
By 12:00 the JSE all share index was up 0.78%, with resources up 0.85%, gold miners up 1.36% and platinum miners 1.63% firmer. Banks were 1.74% stronger, financials were 1.03% better and the industrial index was up 0.57%.
The rand was bid at R7.28 to the dollar, from R7.25 at the JSE's close on Thursday. Gold was quoted at $1 124.89 a troy ounce from $1 125.51/oz at the JSE's last close. Platinum was at $1 684.50/oz from $1 670/oz at the JSE's last close.
"We're pretty much following global markets today which are generally higher on positive sentiment amid further signs of a global economic recovery, which saw an uptick in resource and commodity prices over the weekend. We're also playing general catch-up with banks and financials and interest-rate sensitive stocks still doing well," a local equities trader said.
Dow Jones Newswires reported that European stocks were higher on Tuesday, as the Easter break featured some broadly encouraging news on the progress of the US economic recovery, with Friday's employment release and Monday's non-manufacturing ISM both offering support for global equities.
"The global risk trade appears fully intact as the second quarter begins in earnest, although investor enthusiasm may be hampered by concerns about when the Fed will initiate its monetary tightening cycle," said Ian Williams, strategist at Altium Securities.
However, with the Wall Street leash effects on the recent macro data blowing favourably across the Atlantic, equities in Europe should do well in the near term, added J Wong, analyst at Investors Intelligence.
Still, Tuesday's gains may be vulnerable following a report that Greece wants to amend its aid deal with the European Union to bypass the International Monetary Fund. Steering clear of IMF involvement could allow Greece to avoid austerity measures that face strong opposition at home.
Asian markets finished mostly higher Tuesday with Australia's benchmark stock index tapping an 18-month high as resource shares strengthened, but Japanese shares pulled back after recent market gains.
Japan's Nikkei finished 0.5% lower, Australia's S&P/ASX 200 ended up 0.9% at 4953.7, while South Korea's Kospi Composite added 0.1%. Taiwan's main index closed up 0.8% and New Zealand's NZX-50 was 1.0% higher while the Shanghai Composite finished nearly unchanged. Markets in Hong Kong and Thailand were shut for holidays.
US stocks meanwhile are called to open slightly lower, in line with US futures, says David Morrison at GFT. Calls the DJIA down 14 points at 10,960 and the S&P 500 down 2.5 at 1185. "Having come so close to pushing the Dow back above 11,000, investors are taking a small step back," says Morrison.
