JSE likely to have subdued start as Middle East tension weighs
The latest reports prompted the price of Brent crude oil to surge to its best level in more than eight months on Monday morning
The JSE could start the week on a negative note as investors monitor the rising tension in the Middle East.
US President Donald Trump on Sunday threatened to impose sanctions on Iraq after the latter’s parliament called for foreign troops, including those of the US, to exit Iraq.
The latest reports prompted the price of Brent crude oil to surge to its highest level in more than seven months on Monday morning. The fear that the tension could affect oil supply from the region that is home to some of the world’s largest oil producers has supported the oil price.
Tension escalated last week after top Iranian commander Maj-Gen Qassem Soleimani was killed during a US air strike in Baghdad.
Earlier, the Shanghai Composite was up 0.69% while Hong Kong’s Hang Seng was down 0.53% and Japan’s Nikkei 225 1.94%.
At 7.36am, the rand had weakened 0.16% to R14.3362/$ after ending last week down by almost 2%. It had also weakened 0.19% to R16.0048/€ and 0.19% to R18.7566/£. The euro was flat at $1.1163.
Gold added 1.44% to $1,574.49/oz and platinum 0.69% to $987.92. Brent crude climbed 2.27% to $70.16 a barrel.
Locally, the Absa manufacturing purchasing managers index (PMI) is due for release on Monday morning.