JSE cheers split US Congress
Analysts say the prospect of gridlock could benefit emerging markets, as volatility may decrease on global markets as a result
The JSE was firmer on midday on Wednesday, with the US election spurring risk-appetite on global markets. At 12.32am the all share was up 0.87% at 54,924 points and the top 40 was up 0.82%. Banks were up 2.13% and general retailers 2.41%. US midterm election results have come in largely as expected, with the Democrats on track to win a majority in the House of Representatives, although Republicans have extended their Senate majority. The “blue wave” predicted by many analysts, however, has failed to materialise. This was the outcome priced into the market, analysts said, while the prospect of gridlock could benefit emerging markets, as volatility may decrease on global markets as a result, analysts said. “Volumes have been high, and equities remain supported, suggesting this outcome is positive for risk since the gridlock outcome ultimately will support the president’s mandate and a higher probability of more fiscal stimulus,” Oanda analyst Stephen Innes said. The Republican control...
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