JSE to contend with mixed Asian markets on Friday amid Fed focus
US Federal Reserve chair Jerome Powell is due to give a speech later, and is expected to give details on a move from easy monetary policy
The JSE looks set to contend with mixed Asian markets on Friday morning, with the rand slightly firmer, ahead of speech from US Federal Reserve chair Jerome Powell that will be closely watched.
Powell is expected to give clues about just how the Fed intends to pare back its monetary policy support without causing ructions in the market.
Powell suggests the Fed is committed to tapering despite the softness that has appeared in the data and the spread of the Delta variant across the US, but could also indicate that due to recent events more patience is needed, said Oanda senior market analyst Craig Erlam in a note.
He added, however, Powell may instead opt to say as little as possible in order to buy more time, and details would then follow the Fed’s September meeting.
In morning trade on Friday the Shanghai Composite was up 0.49% and the Hang Seng 0.51%, while Japan’s Nikkei fell 0.56%.
Tencent, which gives direction to the JSE via the Naspers stable, had gained 0.68%.
Gold was up 0.39% to $1,798.58/oz while platinum had gained 0.97% to $988.52/oz. Brent crude was up 0.34% to $71.76 a barrel.
The rand was flat at R14.90/$, having strengthened for the past four-consecutive sessions.
Retailer Massmart is due to release its results for the six months to end-June later, saying in a recent trading update it expects improvement in its headline loss of up to 45.8%. The retailer, which recently announced the sale of its food unit, said its cost-control efforts had delivered results which beat its expectations.
Durban-based freight and logistics group Grindrod, which also owns a bank, is due to report a more than tenfold rise in headline profit for its core operations for its six months to end-June. Covid-19 had been tough for those in the logistics sector, with the group saying in its update it had been boosted by a return of cargo flows including robust citrus and mineral exports.
Steinhoff International is also due to release a trading update for the three months to end-June, its third quarter.