JSE could bounce back a little on Friday after sell-off
US markets closed higher overnight and Asian markets are gaining, after a tough week for equities
The JSE could bounce back a little on Friday if it takes its lead from firmer Asian markets, with the local bourse falling more than 2% on Thursday.
Banks led US equities higher on Thursday, with equities under pressure this week from the concern that the world economy will battle to recover from the effects of Covid-19.
Chinese industrial production data for April came in better than expected on Friday, though consumer demand remains subdued in the world's second-largest economy.
“A glimmer of hope comes from Chinese industrial production which rose 3.9% in April, signifying an economy that’s getting back on its feet while Chinese retail sales remained negative, but having comfortably improved from the first quarter,” Peregrine Treasury Solutions executive director Bianca Botes said in a note.
In morning trade, Hong Kong’s Hang Seng was up 0.4% and Japan’s Nikkei 0.38%.
Tencent, which gives direction to the JSE via Naspers, its biggest shareholder, had added 0.47%.
Gold was flat at $1,731.10/oz while platinum had added 0.45% to $770.50. Brent crude was up 0.57% to $31.64 a barrel.
The rand was 0.1% weaker at R18.45/$.
Eurozone first quarter GDP data and US retail data for April is due later, while the local corporate and economic calendar is bare.