JSE likely to be subdued on Monday as virus fears dominate
Investors are concerned as Chinese travel restrictions now affect 60-million people
The JSE is likely to be subdued on Monday morning, amid the closure of many Asian markets for holidays, with concern about a virus outbreak likely to ensure a risk-off start to the week.
Chinese markets are closed for the Lunar New Year holiday, with markets remaining fixated on the possible economic impact of a coronavirus update.
Traders who would be typically discussing the weekend football results are now focusing on mortality scores this morning, AxiTrader chief Asia markets strategist Stephen Innes said in a note.
More than 2,000 people have been infected with the virus, with about 60-million Chinese facing travel restrictions.
Japan’s Nikkei was down almost 2% in morning trade on Monday.
Gold was up 0.48% to $1,578.80 an ounce, while platinum fell 0.18% to $996.93.
Brent crude was 2.21% lower at $59.32 a barrel, recently under pressure amid concerns about the Chinese economy, and the effect of reduced travel due to the coronavirus.
Markets in Australia are closed for Australia Day.
Locally, the rand was steady at R14.459 a dollar. On Sunday, media reports suggested the ANC is considering land expropriation without compensation that will cut out the court system in favour of an executive authority.
Locally there are no scheduled corporate or economic releases, while international focus remains on the coronavirus.