MARKET WRAP: JSE drops as investors mull conflicting trade-war reports

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SA’s current-account deficit narrowed in the third quarter to 3.7% of GDP, from 4.1% in the second quarter

The JSE closed in negative territory on Thursday as investors digested mixed messages from the US and China as the trade war between the pair stretches into its 17th month.

The latest reports have renewed hope that the US will withdraw the December 15 tariff hike on $156bn worth of Chinese imports. “The market now seems to be pricing in the signing of a ‘skinny deal’ soon, which includes the rolling back of some tariffs, then signing a big trade deal at the end of 2020 after the elections — assuming that Trump gets re-elected,” fund manager Vestact said in a note.

The SA Chamber of Commerce and Industry’s business confidence index rose to 92.7 point in November from 91.7 in the previous month. Gold was up 0.19% to $1,477.06/oz while platinum was down 0.52% to $893.63. Brent crude added 0.92% to $63.56 a barrel.

 

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