The JSE was off its morning highs in midday trade on Monday, but remained on the front foot amid firm metal prices, which boosted commodity stocks according to a local trader.

European stocks and Dow futures entered red territory as volatility crept back into markets.

By 12pm the JSE all share index was 0.89 percent firmer, with resources 0.23 percent better off, and platinum miners 2.32 percent higher. Gold miners added 1.17 percent.

Banks added 1.65 percent, financials gained 1.22 percent, and industrials were 1.33 percent stronger.

The rand was bid at 7.83 to the dollar from 7.86 at the JSE's close on Friday. Gold was quoted at US$1,186.05/oz a troy ounce from US$1,178.03/oz at the JSE's last close. Platinum was at $1,528.50/oz from $1,497.50/oz at the JSE's last close.

"We have drifted off our earlier highs, in line with global markets with Dow Futures lower, and stocks in Europe also down. There is still quite a bit of volatility in the market," a local equities trader said.

Dow Jones Newswires reports that US stocks are expected to open down Monday, running out of steam following the rally in the previous session.

David Morrison at GFT called the DJIA down 70 points at 10 123 and the S&P 500 down eight points at 1079. He said the focus was likely to remain on Europe, in light of a very quiet economic agenda.

Dow front month futures contract traded down 0.3 percent at 10,126.0.

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. Also, market participants are keeping a cautious eye on the Korean situation after North Korea sank a South Korean warship.

On Wall Street, stocks closed higher Friday, led by financial companies, after the US Senate passed a financial overhaul bill.

Overall, the Dow Jones Industrial Average rose 1.2 percent to 10 193.39.

Asian stock markets were mostly higher Monday with property developers in China rising on hopes that Beijing may ease up on future tightening measures to curb the property market, though shares in Japan ended mostly lower as investors were still cautious about debt troubles in the euro zone.

Japan's Nikkei Stock Average fell 0.3 percent to end at 9,758.40, the weakest closing level since early December, while China's Shanghai Composite gained 3.5 percent, and Hong Kong's Hang Seng Index climbed 0.6 percent.