Positive Chinese data could boost JSE on Monday
A manufacturing purchasing managers’ index unexpectedly rose in November, boosting Asian markets, but gold miners could suffer
The JSE could get a lift from upbeat sentiment in Asia on Monday morning after unexpectedly positive Chinese data for November.
China’s purchasing managers’ index (PMI) for November broke a six-month streak of declines, while the non-manufacturing index was at a seven-month high.
The move back into expansionary mode in China’s official manufacturing PMI is good news, but the sub-indices paint a mixed picture, said National Australia Bank analyst Rodrigo Catril.
The unemployment index was unchanged, despite there being more working days in November than in October, said Catril.
Asian markets were higher, with the Shanghai composite up 0.35% and the Hang Seng 0.46% higher.
Gold was 0.3% weaker at $1,459.31 an ounce while platinum lost 0.44% to $894.50. Brent crude was 0.74% up at $61.20 a barrel.
The rand was a little firmer, which could add further pressure on local precious metal miners.
The day is busy in terms of economic releases, with the Absa purchasing managers’ index (PMI) for November out later. The index provides a good gauge of the health of the manufacturing sector.
Also due is the SA Chamber of Commerce and Industry (Sacci) business confidence index for November.