JSE takes lead from stronger Wall Street close

The JSE was firmer on Thursday morning as global markets rallied amid risk-on trade after a stronger Wall Street close overnight.

US markets took heart from the report from US payroll processor ADP that indicated steady economic growth in the world’s largest economy.

European and Asian markets were also firmer‚ with the German DAX 30 up 1.44% and Paris CAC 40 adding 1.17% ahead of the conclusion of the European Central Bank’s (ECB’s) two-day policy meeting.

The Japanese Nikkei 225 closed 0.48% higher‚ while Chinese markets are closed for a two-day holiday.

At 9.54am‚ the all share was up 1.01% at 49‚724.50 points and the blue-chip top 40 added 1.11%.

Gold miners led the gainers‚ surging 3.44%‚ after shedding more than 5% on Wednesday. Resources were up 1.49%‚ while platinums were weaker‚ down 3.05%.

Barclays analysts said in a global note that the US ADP report on Wednesday showed a "healthy" pace in job creation of 190‚000 in August.

The analysts expected nonfarm payrolls data to show 225‚000 more jobs were created in August.

"European equities also rallied as markets anticipate a dovish bias in today’s ECB meeting. A dovish ECB message should help market sentiment recover. We expect a dovish message in the press conference and believe further easing is likely before year end‚" Barclays said.

Among individual shares on the JSE‚ Anglo American was up 2.45% at R144.92 and BHP Billiton added 1.26% to R222.

Steel producer ArcelorMittal gained 2.98% to R10.02 after tumbling more than 6% on Wednesday.

AngloGold Ashanti surged 5.40% to R105.52 and Harmony climbed 4.17% to R10.75.

Impala Platinum lost 6.32% after announcing that headline earnings per share (HEPS) for the year ended June 2015 were down 58% to 36c compared with the year-earlier period.

Lonmin fell 6.98% to R6; it lost 3% on Wednesday.

Financial services company Sanlam was down 3.63% at R60.23 after announcing diluted HEPS for the six months ended June 2015 up 6% to 233.1c compared with the year-earlier period.

Media player Caxton was untraded at R20. The company announced that full-year adjusted HEPS were up 21.1% to 119.1c.

– BDlive