Picture: JSE
Picture: JSE

The JSE could take its lead from firmer Asian markets on Monday morning, with risk assets boosted by renewed hopes the US and China can agree to a partial trade deal by Christmas.

In guidelines issued on Sunday, China’s State Council and the Communist Party’s Central Office said it will raise penalties on violations of intellectual property rights.

China will also investigate lowering the thresholds for criminal punishments for those who violate these rights.

This suggests that China is willing to make concessions on some of the key structural issues within the trade war, said AxiTrader senior market analyst Stephen Innes in a note.

In morning trade Hong Kong’s Hang Seng had jumped 1.76%, while the Shanghai composite and Nikkei were both up about 0.3%.

Gold was flat at $1,461.08 an ounce while platinum had risen 0.31% to $895.67. Brent crude was little changed at $63.52 a barrel.

Tencent was up 1.8% in Hong Kong.

The rand was 0.14% firmer at R14.6853 a dollar.

Local news is less positive, with markets needing to react to news after markets closed on Friday that S&P Global Ratings has put SA’s credit rating on a negative outlook.

There are no big scheduled economic releases on Monday, while in corporate news, Pepkor, previously Steinhoff Africa Retail, is expected to report its results to end-September later this week.

The company said earlier in November earnings may fall by a third due to a contraction in the building materials market.

Property group Sirius is also expected to report its interim results to end-September later this week, having said previously like-for-like occupancy during the period had been flat, though rentals had grown.

gernetzkyk@businesslive.co.za