JSE recovery may continue on Wednesday amid Chinese stimulus hopes
Asian markets climb higher on Wednesday morning, though uncertainty regarding the coronavirus persists
The JSE could take its lead from positive Asian markets on Wednesday morning, and post a second session of gains, amid a mild recovery from recent pressure as a result of the coronavirus.
Investors have been fixated on the viral outbreak over the past two weeks amid concerns it will damage global economic prospects.
Commodities and Asian markets were mostly higher, though the rand was slightly weaker, though Tencent was a little subdued in Hong Kong.
At 6am SA time Shanghai’s Composite was up 1.63%, while the Nikkei had gained 1.23% and the Hang Seng 0.36%.
“After a very cold end to last week and a negative post-holiday catch-up move by China’s equity market on Monday, markets have now embarked on a new rebound, spurred by China’s efforts to support its economy alongside an apparent decline in concerns over the coronavirus impact on the global economy,” said National Australia Bank analyst Rodrigo Catril in a note.
Gold was up 0.28% to $1,557.25/oz and platinum 0.15% to $963.42. Brent crude had jumped 1.43% to $54.55 a barrel.
The rand was 0.33% weaker at R14.8242/$.
Locally, Standard Bank’s purchasing managers’ index for January is out later, and should give some indication of business conditions at the beginning of the year.
Paper and pulp packing group Sappi is due to release an update on its business conditions later. The group’s share price has declined 18.78% so far in 2020.
Globally, eurozone retail sales numbers for December and US manufacturing data for January are due later.