SA stocks bounce back
The JSE opened firmly in the black, tracking international sentiment, with metal stocks also ticking higher.
By 09:22 the JSE all share index was 1.81% firmer, with resources 1,84% better off, and platinum miners 2.81% higher. Gold miners added 1.57%.
Banks added 2.08%, financials gained 1.74%, and industrials were 1.74% stronger.
The rand was bid at 7.80 to the dollar from 7.86 at the JSE's close on Friday. Gold was quoted at US$1,189.93/oz a troy ounce from US$1,178.03/oz at the JSE's last close. Platinum was at $1,535.50/oz from $1,497.50/oz at the JSE's last close.
A local trader said: "We have seen a bounce this morning after a lousy week last week. Global sentiment is firmer, Europe has started well, and Dow Futures is also higher. Metals are firmer, with both gold and platinum higher."
The trader noted home sales data out in the US later.
Following Europe
European stocks opened firmer on Monday, finding support from upbeat Asian stock markets and Wall Street's rally Friday, despite sentiment remaining fragile on persistent worries about the euro zone's sovereign-debt problems according to Dow Jones Newswires.
A bullish finish to the week on Wall Street combined with positive sentiment surrounding China - namely suggestions that the Chinese yuan currency is to gradually strengthen and ideas about reigning in economic growth won't transpire given the hiatus we've seen in Europe-should allow the major European markets to make a little more headway as the new trading week gets under way," said Ben Potter, analyst at IG Markets.
Adding further support was some encouraging news on the Greek front towards the end of last week "with Germany finally approving its share of the European Union aid package whilst Greece appeared to be on track with its budget-deficit reduction as the country recorded a cash deficit of EUR6.3 billion in the first four months of the year, a 42% reduction compared to a year earlier.
"EU officials also agreed on tougher sanctions for countries breaching austerity rules," said Mitul Kotecha, head of global foreign exchange strategy at Credit Agricole Corporate & Investment Bank.
Also, European banking shares are in the spotlight once again after Spain's central bank moved Saturday to take over Roman Catholic Church-controlled savings bank CajaSur, holding 0.6% of total banking assets in Spain, which faced difficulties due to distressed real-estate exposure.
Market participants are keeping a cautious eye too on the Korean situation after North Korea sank a South Korean warship, said Potter. "A significant escalation here [between North and South Korea] would given an excuse to deepen the global sell off," he added.
Looking ahead to the day's economic releases, no major figures are expected from the UK or the euro zone so attention will turn to US existing home sales data at 1400 GMT, which are expected to show a continuing recovery in demand as the Federal government's buyers' grant attracts people back to the market, said Adrian Foster, analyst at Rabobank.
"It's a slowly-ticking clock but we are getting closer to getting a read on the US property market without the artificial stimulus of tax-payer support," Foster said.