JSE may get boost as countries move to ease lockdown restrictions
Hopes that economic activity will resume lift Asian markets despite persistent threat of US-China trade war
The JSE could find support from growing hopes that easing lockdown restrictions will result in a resumption of economic activity on Monday, while the threat of a trade war between the US and China poses a threat to sentiment.
The White House said on Friday it will stop Chinese telecom giant Huawei from developing semiconductors with US technology, while there are also concerns the US will point a finger at Beijing for the scale of the Covid-19 pandemic.
Asian markets were higher on Monday morning however, with the Shanghai composite up 0.6% and the Hang Seng 0.4% higher.
“If Washington DC’s intent to escalate trade issues has markets nervous, it is being trumped by the increasing pace of lockdown reopenings around the world, and the expected follow-on uptick in economic activity,” said Oanda analyst Jeffrey Halley in a note.
Gold was up 1.12% to $1,760.60 an ounce while platinum was up 0.84% to $803.30 an ounce. Brent crude was 1.7% higher at $33.44 a barrel.
The rand was 0.3% firmer at R18.50 a dollar.
Local focus this week is on the Reserve Bank, which is expected to deliver another hefty interest rate cut on Thursday, and on Covid-19 infections rates on Monday, after the pandemic prompted some local mine closures at the weekend.