JSE faces mixed Asian markets on Monday
Focus is on rising Covid-19 numbers and stimulus measures from various global governments
The JSE faces mixed Asian markets on Monday morning, with sentiment under threat from rising Covid-19 cases in SA, the US and elsewhere.
Enhanced shutdowns are a genuine possibility as the US failed to emerge from even the first wave of the pandemic, said Oanda analyst Jeffrey Halley in a note. Things are also getting worse in India and Brazil, he said.
Markets so far do not seem too fazed by this, said AxiCorp chief global markets analyst Stephen Innes in a note, perhaps reflecting optimism about a vaccine, or that medical systems do not look set to be overwhelmed in the same manner as in the first phase of the outbreak.
Markets remain buoyed by the prospect of further stimulus measures from global central banks and governments, he said.
In morning trade the Shanghai Composite was up 2.62% and Hong Kong’s Hang Seng 0.35%.
Earlier, China kept its loan prime rate unchanged, which Halley said was likely to reflect that countries prefer more surgical stimulus measures, rather than broader measures that could stoke inflation.
Gold was flat at $1,808.37 an ounce while platinum was little changed at $838.51. Brent crude was 0.58% lower at $42.84 a barrel.
The rand was 0.32% weaker at R16.73 a dollar.
There is little on the local corporate or economic calendar on Monday, with focus instead on the Reserve Bank interest rate decision on Thursday.
Globally, focus remains on Covid-19 numbers.
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