adminA local trader said that the market had taken direction from the weaker close in the east that was itself brought down by the weaker US close on Friday despite positive economic data.
The meeting between Germany’s Angela Merkel and French President Nicolas Sarkozy on the eurozone debt crisis will be awaited for further direction.
At 09:16 local time, the JSE all-share index was 0,21 percent lower. Gold stocks declined 0,69 percent, platinums diminished 0,33 percent and resources weakened 0,11percent.
Banks gave up 0,77 percent, financials lessened 0,47 percent and industrials withered 0,15 percent.
The rand was bid at R8,17/US$ from R8,16/US$ at the JSE’s close on Friday. Gold traded at US$1 614,36 a troy ounce from US$1 617,38 at the JSE’s previous close, while platinum was quoted at US$1 407,50/oz, from US$1 403/oz at the previous close.
Dow Jones Newswires reported that Asian stock markets were mostly lower yesterday as continued concerns over the outlook for Europe overshadowed better-than-expected US jobs data on Friday, and pushed the euro to fresh lows against the US dollar and the Japanese yen.
Concerns abound about the ability of European leaders to find a comprehensive solution to the eurozone’s ongoing sovereign-debt and banking crisis amid growing worries over the outlook for Greece, Italy and Spain.
The uncertainty eclipsed positive US economic data on Friday, which showed a drop in the US unemployment rate to its lowest level since February 2009.
Italian Prime Minister Mario Monti on Sunday ruled out a new austerity plan, reiterating that the measures already announced are enough to guarantee the country will reach its economic targets.
Italy will run a balanced budget by 2013 and a primary surplus of 5 percent of gross domestic product that year, probably the highest in the euro area, Monti said on Sunday. Monti confirmed that he will meet Merkel tomorrow to persuade her that Italy will fulfil the austerity obligations it has undertaken.
European governments may have to increase guarantees to ensure that investors provide funds and boost the firepower of the European Financial Stability Facility, Klaus Regling, EFSF chief executive officer, said according to the German newspaper Bild am Sonntag.
Investors are likely to start with a cautious approach on Monday, leading stock markets lower, with bunds and gilts mixed.
The euro is narrowly mixed, with spot gold and oil futures lower. – I-NET BRIDGE
Online Reporter