JSE follows Asian markets higher on trade deal optimism
Investors are also waiting for the US Fed’s interest-rate decision on Wednesday, which is expected to be a 25 basis points cut
The JSE was higher on Monday morning, tracking Asian markets, as trade-war optimism lifted sentiment.
China’s commerce ministry said on Saturday that both the US and China have agreed to properly address core issues, adding to hope that the two economic superpowers will soon finalise the phase-one trade deal.
Investors are also waiting for the US Federal Reserve’s interest-rate decision on Wednesday amid expectations that it will cut by 25 basis points.
“If the Fed delivers a rate cut on Wednesday it will be the third and therefore the question becomes, is the Fed done with their ‘mid-cycle adjustment’ and ‘insurance’ cuts or is this the start of a more significant easing cycle?” said FXTM chief market strategist Hussein Sayed.
Earlier, the Shanghai Composite added 0.85%, Hong Kong’s Hang Seng 0.84% and Japan’s Nikkei 225 0.30%.
At 11.10am, the JSE all share was up 1.32% to 55,867.8 points and the top 40 1.5%. Banks added 1.51% and resources 1.56%.
Famous Brands was down 1.3% to R80.54. The company said on Monday that its headline earnings per share fell by 15% to 159c in the six months to end-August.
Astral Foods added 0.2% to R162.33. The poultry processing group said on Monday that it expects HEPS to decrease between 60% to 50% to between 1,485c and 1,856c in the year to end-September.