The JSE started the week on an upbeat note on Monday‚ after the Dow closed sharply higher on Friday and Asian markets followed suit.
Markets traded positively ahead of expected further clues from European Central Bank (ECB) president Mario Draghi in the European Parliament on when the ECB would end its easing policies.
The euro rose against the dollar in anticipation‚ supporting the rand‚ which hit R11.5069 in early-morning trade.
The weaker dollar benefited mining stocks on the JSE.
US inflation data‚ set to be released later this week‚ could provide further support to the US Federal Reserve’s slight tilt to a more hawkish stance in 2018 on positive economic date.
The ECB has long been preparing the markets for the end of its bond buying programme‚ Oanda analyst Craig Erlam said.
“Draghi may therefore drop further hints on the timing of such a policy shift‚ which the euro will be particularly sensitive to‚” he said. A number of central bankers are also set to make some pronouncements this week‚ including new Fed chairperson Jerome Powell’s appearances before the US House financial services committee on Tuesday and the Senate on Thursday.
Core central banks have signalled continuity and confidence‚ and both Fed and ECB minutes reflect comfort in the economic outlook‚ Barclays Research analysts said.
The Dow closed 1.39% higher at 25 309.99. The Nikkei 225 rose 1.19% and the Hang Seng 0.71%.
At 9:35am the all share was 0.81% higher at 59 193.60 points and the top-40 added 0.91%. The gold index rose 2.42%‚ resources 1.94%‚ property 1.42%‚ banks 0.99%‚ financials 0.95% and general retailers 0.85%.
Sasol jumped 4.68% to R412.95 on its interim financial results‚ released early in the morning and indicating a 17% rise in headline earnings per share.
Anglo American rose 1.92% to R292.74. Remgro was up 1.54% to R246.82.
Nedbank rose 1.86% to R298.44. Discovery added 0.91% to R181.62.
Steinhoff jumped 6.06% to R5.60. The Independent Regulatory Board for Auditors (Irba) said on Sunday that following its initial review of Steinhoff’s auditors‚ Deloitte would pursue a further investigation into the group.
Resilient gained 0.58% to R68.90 after informing the market on Friday it was re-evaluating valuations related to empowerment partner the Siyakha Education Trust.
Nepi Rockcastle jumped 3.4% to R120.98.
Naspers slipped 0.35% to R3 322.98.
by Maarten Mittner – BusinessLIVE