JSE to open to firmer Asian markets on Tuesday
Global markets generally positive on Monday, however Tencent extends Friday’s losses
The JSE will reopen to firmer Asian markets on Tuesday morning, amid hopes of easing US-China trade tension, as well as hopes of further stimulus measures from the US Congress.
Global markets were generally higher on Monday, while local markets were closed for Women's Day.
US President Donald Trump has signed executive orders to extend various stimulus measures. Sentiment was boosted on Tuesday by comments from a Chinese official reaffirming commitment to phase one of a trade deal signed with Washington.
While some uncertainty diminished over stimulus talks in the US, concerns about Covid-19, and the trade deal linger, said AxiCorp chief global markets strategist Stephen Innes in a note.
“With hotspots still flaring up around the world, one can never let the Covid 19 guard down as the northern hemisphere pivots to winter months when the virus outbreaks are thought to be more prevalent,” Innes said.
Tencent jumped 3% in morning trade on Tuesday, after extending Friday’s losses on Monday, losing almost 10% over the two sessions. This came amid threats from the White House to ban WeChat, Tencent's messaging app, from the US.
The Hang Seng rose 2.4% on Tuesday morning, while the Shanghai Composite was up 0.3%.
Gold was down 0.47% to $2,017.72/oz while platinum gave back 0.73% to $979.63. Brent crude was 0.58% higher at $45.18 a barrel.
The rand was 0.45% firmer at R17.61/$.
Local manufacturing data for May and June is due later.
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