JSE to contend with muted Asian markets on Monday after volatile week
The local bourse was closed on Friday, when global markets were mixed, as they digested risks from China and the future of US monetary policy
The JSE must contend with subdued Asian markets on Monday morning, coming off a volatile week for global markets, when investors were digesting the US Federal Reserve’s policy signals, and the potential collapse of Evergrande.
Global markets remained jittery on Friday, when SA markets were closed for Heritage Day. Cryptocurrencies were also volatile, after Chinese regulators released a policy document essentially banning their use in transactions.
The concern that the collapse of property giant Evergrande will spill over into the rest of the market eased a little towards the end of last week after an agreement was reached for payments to bond holders. Global markets also welcomed the Fed’s decision to hold off, for now, on tapering monetary policy support.
The week starts with markets waiting for the outcome of Germany’s federal elections, which took place at the weekend, while US legislators are also expected to grapple with the issue of raising the debt ceiling for government spending, and are also expected to debate a $3.5-trillion infrastructure spending bill.
In morning trade on Monday the Shanghai composite had fallen 1.3%, while the Hang Seng was up 0.28% and Japan’s Nikkei was flat.
Tencent, which gives direction to the JSE via the Naspers stable, had gained 1.3%.
Gold was up 0.51% to $1,758.80/oz while platinum had risen 1.3% to $997.28. Brent crude was 1.26% higher at $78.98 a barrel.
The rand was 0.22% firmer at R14.90/$, having slipped 1.3% on Friday, losing about 20c.
The corporate calendar is a bit bare on Monday, as is the economic calendar, though it is a busy week in general, with nonfarm payrolls data for the second quarter due on Tuesday, when the Reserve Bank will also release its quarterly bulletin for the same period.