JSE may benefit from firmer Asian markets on Monday
Rapid rise in new Covid-19 cases continues to weigh on markets
The JSE could start the week on a positive note, tracking Asian stocks amid growing optimism about the prospects of global economic recovery.
Global equities have been supported by encouraging economic data from the world’s largest economies fuelling hope that economies may recover sooner.
While the reopening of more economies has aided market sentiment, the rapid rise in new Covid-19 cases continues to weigh on markets as investors worry that a spike in new cases could further delay reopening in some parts of the US.
Earlier, the Shanghai Composite climbed 4.58%, Hong Kong’s Hang Seng 3.06% and Japan’s Nikkei 1.84%.
At 7.37am, the rand had firmed 0.38% to R16.9354 per dollar and 0.12% to R21.1636 a pound while it was flat at R19.1145 per euro. The euro had firmed 0.36% to $1.1287.
Gold was up 1.03% to $1,773.10 an ounce while platinum was down 0.26% to $808.42. Brent crude added 0.80% to $42.61 a barrel.
“With some clear upward momentum to equities as the week starts, only an ugly headline bomb could ruin the party. That sentiment is likely to continue through Asia today and into Europe and the US, with no economic data of note that could upset the applecart,” said Oanda market analyst Jeffrey Halley.
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