JSE to contend with mixed Asian markets on Wednesday
Mainland Chinese markets are weaker as the US moves to sanction Beijing over Hong Kong, while there is optimism around a Covid-19 vaccine
The JSE may not get clear direction from Asian markets on Wednesday morning, with geopolitical tension competing with the optimism around an economic recovery and a Covid-19 vaccine.
US President Donald Trump on Tuesday signed into a law an executive order removing Hong Kong’s preferential treatment in the wake of tighter security laws there. The order entails “no special privileges, no special economic treatment, and no export of sensitive technologies”.
There is some optimism on global markets about the prospect of a Covid-19 vaccine in coming months, while US inflation data for June beat expectations.
In morning trade on Wednesday the Shanghai Composite was down 1.4% while Japan’s Nikkei had added 1.32%.
Tencent, which influences the JSE via major shareholder Naspers, had gained 1.5%.
Gold was down 0.13% to $1,806.53/oz while platinum was flat at $827.59. Brent crude was 0.14% higher at $43.10 a barrel.
The rand was 0.21% firmer at R16.69/$.
There is little on the local corporate calendar on Wednesday, but inflation data for May, due later, is expected to be subdued in light of the recent decline in global fuel prices.
Would you like to comment on this article or view other readers' comments?
Register (it’s quick and free) or sign in now.
Please read our Comment Policy before commenting.