JSE could benefit on Tuesday from recovery in Asian markets
The JSE could take its lead on Tuesday morning from firmer Asian markets, as investors continue to digest the economic implications of the coronavirus outbreak.
Focus is on the Chinese government’s response to the virus, both in terms of saving lives, and any policy response to the economic effects of the outbreak.
Though there has been some recovery this week, this is unlikely to be durable, said BK Asset Management MD for foreign exchange strategy Kathy Lien in a note.
“Even if China manages to get the virus under control and cases peak, it will be sometime before business returns to normal,” Lien said.
In morning trade on Tuesday Hong Kong’s Hang Seng was up 1%, while the Shanghai Composite had recovered 0.2%, after losing 7.72% on Monday.
Tencent, of which Naspers is the largest shareholder, was up 2.26%.
Gold was flat at $1,575.50/oz while platinum had gained 0.61% to $972.16. Brent crude was 1.22% higher at $54.74 a barrel.
The rand was 0.32% firmer at R14.8266/$.
There are no local economic releases on the calendar on Tuesday, while Vodacom is set to give a trading update.
Internationally, focus remains on the coronavirus, while eurozone producer inflation data, and US business confidence numbers, could also provide some direction to the market.