JSE could follow firmer Asian markets on Tuesday
Asian markets, and Tencent, are up sharply in morning trade as Covid-19 restrictions ease, but sentiment remains fragile
The JSE may benefit from firmer Asian markets on Tuesday morning, though sentiment remains fragile, as investors consider US-China relations.
Markets seem focused on the narrative around restrictions easing, AxiCorp chief global markets strategist Stephen Innes said in a note. Markets may be a bit complacent about recent comments regarding China from US President Donald Trump, he said.
Trump said recently that the US could completely “decouple” from China.
A White House official said on Monday that the recent trade deal was off due to alleged Chinese dishonesty regarding the origins of Covid-19, but the White House has since said the deal is intact.
In morning trade on Tuesday the Hang Seng was up 0.97% while Japan’s Nikkei had added 0.93%.
Tencent, which influences the JSE via Naspers, gained 4%.
The rand was 0.23% weaker at R17.31/$.
Gold was flat at $1,751.70/oz while platinum was 0.66% weaker at $815.49. Brent crude was flat at $43.01 a barrel.
Local jobs data is due later, but domestic focus this week remains on the supplementary budget on Wednesday, when details are expected on how the government intends to grapple with falling tax revenue and demands for stimulus.