JSE set for another day of gains
Global markets are welcoming the prospect of Chinese stimulus, and have been recovering this week after a sharp sell-off due to the coronavirus
The JSE was on track for a second day of gains on Wednesday morning, with global markets mostly higher as market concerns over the coronavirus cooled.
Chinese authorities announced a series of measures this week to inject liquidity into the market, and there is the hope that further stimulus may be forthcoming.
Markets seem to be betting that the economic and health effects of the virus will be short-lived, but there is no clear evidence of this, Oanda senor market analyst Jeffrey Halley said in a note.
“No amount of stimulus packages will work if citizens stop consuming goods and services and stay at home and hoard their money. Just ask Japan,” Halley said.
At 10.20am the all share was up 0.31% to 56,994.49 points while the top 40 had gained 0.4%. Banks were up 1.17% and financials 0.58%. Platinum miners gave back 0.91%.
Gold was flat at $1,554/oz while platinum had risen 0.15% to $963.49. Brent crude was 1.58% higher at $54.64 a barrel.
The rand had fallen 0.26% to R14.8138/$, 0.33% to R16.3589/€ and 0.42% to R19.32240/£.