JSE faces blue Monday before busy week
Chinese data is disappointing, with numerous risk events awaiting, including a US-China tariff deadline and UK elections
The JSE could be subdued on Monday morning, with some negative local and global economic developments keeping risk assets under pressure.
Locally, load-shedding continues, while Chinese exports contracted for the fourth-consecutive month in November, disappointing the market.
The week ahead is busy, with new US tariffs due to kick in on Sunday and investors waiting to see whether a partial trade deal will be signed before it.
British elections that are due to take place on Thursday could determine the future of Brexit.
A comfortable outright Conservative majority is predicted by the polls and priced at 70% according to the bookies, said National Australia Bank analyst Ray Atrill in a note.
Due to residual uncertainty, a significant reaction in the pound and UK risk asset markets with spillovers to Eurozone markets should be expected if this is indeed the outcome, said Atrill.
The final US Federal Reserve monetary policy decision in due on Wednesday, to be followed by the European Central Bank’s monetary policy announcement on Thursday. No change in rates is expected from either.
In morning trade on Monday Asian markets were subdued, though Japan’s Nikkei added 0.23%, with third-quarter economic growth in that country revised upwards on Sunday.
Gold was flat at R1,460 an ounce while platinum had fallen 0.23% to $892.61 an ounce. Brent crude was 0.19% lower at $64.19 a barrel.
There is little on the local corporate calendar, though Alexander Forbes Group Holdings is expected to report that headline earnings per share rose by about a third in its six months to end-September.