JSE to contend with mixed Asian markets on Wednesday
The JSE faces mixed Asian markets on Wednesday morning, with markets digesting US corporate earnings reports ahead of the Federal Reserve policy announcement later.
An earnings report from McDonalds did not paint a good picture of the US economy, while Covid-19 cases are also rising in China, and there is concern of an uptick in Germany as well, Oanda analyst Edward Moya said in a note.
There are also concerns that talks between the Republicans and Democrats over another stimulus package for the US will collapse, Moya said, though there may ultimately be an agreement.
In South Africa, inflation data for June is due later, while South Africa’s embattled economy may receive another blow after a court ruled in favour of Eskom in its dispute with the regulator of electricity tariffs on Tuesday. This could mean a double-digit rise in electricity costs.
In morning trade on Wednesday the Shanghai Composite was up 1.05%, while Japan’s Nikkei had fallen a similar amount.
Gold was down 0.29% to $1,953/oz while platinum fell 1.38% to $937.34. Brent crude was flat at $43.24 a barrel.
The rand was 0.17% firmer at R16.48/$.
Chemicals and explosives group AECI is due to report its interim results to end-June later, and profits are expected to reflect tough trading conditions as a result of Covid-19. The group said in a recent trading update that headline earnings per share (HEPS) are expected to fall as much as 40%.
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