JSE firms on hopes of new talks between China, US over tariffs

International markets including the JSE were off to a muted start on Tuesday morning, as growth in Chinese manufacturing for July slowed, awakening new fears of the impact of trade disputes between China and the US.

Locally, the pressure continued throughout most of Tuesday’s session with Stats SA releasing disappointing unemployment figures.

But the JSE All-Share index still managed to close up 0.31% on the day and the Top-40 index gained 0.33%, as news broke just before the US markets opened that China and the US were seeking to restart talks to defuse their trade war.

This helped undo negative market sentiment experienced earlier in the session.

The Industrials index weakened by 0.50%, while the Resources and Financials indices closed 1.48% and 1.00% firmer respectively. 

At 17:00, the rand was trading 0.33% firmer at R13.12/$, after opening at R13.15 to the greenback.  

Energy company Montauk Holdings Ltd [JSE:MNK] rose 5.01% to close at R97.45 per share. Glencore PLC [JSE:GLN] was 3.22% firmer at R57.76 per share, while Invicta Holdings Limited [JSE:IVT] came under significant pressure and slumped 4.98% to close at R33.20 per share.

PPC Limited [JSE:PPC], meanwhile, lost 3.19% to close at R6.38 per share. 

The price of oil came under pressure on Tuesday as reports surfaced that OPEC increased output in July to the highest level for 2018. Brent crude was trading 1.12% weaker at $ 74.48 per barrel just after the JSE closed. 

At 17:00 gold was trading marginally down 0.04% at $1 221.05 per ounce, while platinum strengthened by 0.61% to trade at $835.50/Oz. Palladium gained 0.10% to trade at $925.40/Oz.

Cryptocurrencies also moved lower with Bitcoin 6.44% weaker on the day at $ 7730 per coin,  and Ethereum down 9.66% at $430.

* The JSE market update is from GT247.com, an online broker and authorised financial services provider.

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