JSE faces tepid Asian markets ahead of emergency budget
All eyes are on the release of the supplementary budget, with international attention on the rise in Covid-19 cases in the US and elsewhere
The JSE faces mixed, and subdued, Asian markets on Wednesday, with local attention squarely on the release of the emergency budget later in the day.
SA needs to rein in a growing budget deficit in the wake of a sharp drop in tax revenue and stimulate the economy.
Key points, such as the allocation of funds to state-owned enterprises (SOEs) and any feedback from finance minister Tito Mboweni on prescribed assets, will set the direction for the rand, Peregrine Treasury Solutions executive director Bianca Botes said in a note.
In morning trade, the Shanghai Composite was up 0.15% while Japan’s Nikkei had fallen 0.18%.
Tencent, which influences the JSE via its largest single shareholder, Naspers, had added 0.44%.
`Wall Street equities powered higher, led by big-tech, but Asia is likely to also has one eye on the disturbing re-emergence of Covid-19 across the world, said Oanda analyst Jeffrey Halley in a note.
Gold was flat at $1,767.85/oz while platinum was down 0.22% to $824.50. Brent crude was 0.19% higher at $42.42 a barrel.
The rand was little changed at R17.20/$.
Local inflation data for April and retail sales numbers for March are also due later.