Picture: JSE
Picture: JSE

THE JSE was weaker at midday on Tuesday, taking its cue from softer European and mixed Asian markets, in a holiday shortened trading week.

Global stocks edged lower and haven assets gained on Tuesday as investors reacted to early reports of explosions in Brussels, Dow Jones Newswires reported.

Several explosions rocked Brussels at its international airport and at a metro station, prompting officials to shut down the entire public transport network. The Stoxx Europe 600 index initially fell more than 1.3% in morning trade before paring losses to 0.6% by midday, the newswire said. The explosions come as European nations remained on high alert for terror attacks.

At 12.47pm, the all share index was down 1.41% to 53,063.80 points and the blue-chip top 40 index had lost 1.55%.

Resources and food retailers led the decliners, down 1.26% and 2.06% respectively. Gold miners gained 2.86% due to risk-off trade and as investors looked for safe-haven assets.

US futures pointed to a 0.3% opening loss for the S&P 500.

In recent years, financial markets had immediately reacted negatively to explosions and attacks in western cities before quickly recovering. Markets, from equity to bonds and gold, were little disrupted by the killing of at least 129 people in Paris last November. Still, losses in the securities of airlines and travel companies tend to linger for longer, Dow Jones Newswires said.

Investors would eye data on the US manufacturing sector later on Tuesday. Wall Street climbed slightly on Monday to close at its highest closing level this year, but trading volume fell to a 2016 low in a holiday-shortened trading week, with few fresh catalysts expected to steer direction in the week ahead, the newswire said.

Among individual shares on the JSE, Anglo American was down 2.52% at R118.65 after the miner said on Tuesday it has reduced its net debt by $130m after completing a bond buy-back programme. The plan was aimed at strengthening its balance sheet while it grappled with a protracted rout in commodity prices.

Rival BHP Billiton fell 3.95% to R178.14.

Gold miner AngloGold Ashanti added 3.54% to R213.55, while food retailer Spar lost 3.25% to R190.08.