JSE may get boost on Tuesday from positive Chinese data
The JSE could find support from firmer Asian markets on Tuesday morning, with sentiment given a boost by better-than-expected Chinese manufacturing data for June.
Investors are now more interested in data showing improving activity, rather than the longer-term structural economic concerns, said AxiCorp chief global markets strategist Stephen Innes in a note.
Uncertainty persists, with Beijing moving to sign a new security bill for Hong Kong, while the World Health Organisation (WHO) has warned it expects to the Covid-19 pandemic to get worse before it gets better.
In morning trade the Shanghai Composite was up 0.58%, the Hang Seng 0.89% and Japan’s Nikkei 1.8%.
Tencent, which influences the JSE via Naspers, was up 2.8%. Naspers also released its results for the year to end-March after markets closed on Monday.
Gold was flat at $1,770.80/oz, while platinum had risen 0.12% to $812.30. Brent crude was 0.62% lower at $42.40 a barrel.
The rand was little changed at R17.12/$.
Locally, first-quarter GDP data is due later on Tuesday and is likely to show a sharp contraction as the effects of Covid-19 took hold. SA was already in a recession in the last half of 2019. UK GDP data for the first quarter is also due.
In corporate news, transport and logistics group Barloworld is expected to report writedowns in its half year to end-March as it grapples with a deteriorating trading environment.
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