JSE faces subdued Asian markets on Monday
The JSE faces subdued Asian markets on Monday morning, amid rising Covid-19 numbers and deteriorating US-China relations.
Covid-19 numbers are rising in Spain, Australia, South East Asia, SA and the US, pointing to further economic disruption due to the pandemic. Sentiment remains under pressure from deteriorating US-China relations, with both countries ordering the closure of one of each other’s consulates last week.
There was some improvement in mood in the market on Monday, said Oanda senior market analyst Jeffrey Halley in a note. Chinese data showed an improvement in industrial profits, while there appeared to be progress in the US regarding a follow-up Covid-19 stimulus package, he said.
In morning trade the Shanghai Composite and Hong Kong’s Hang Seng were flat, while Japan’s Nikkei was down 0.3%.
Tencent, which influences the JSE via Naspers, had fallen 0.47%.
Gold was up 1.71% to $1,932.12 an ounce while platinum had risen 2.58% to $938.57. Brent crude was little changed at $43.30 a barrel.
There is little on the local economic calendar on Monday. Industrial-focused Invicta Holdings is due to release its results to end-March later, having recently warned of hefty writedowns.
Property group Liberty Two Degrees is also expected to report a sharp fall in earnings for its six months to end-June later, due to fallout from the pandemic.
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