JSE faces mostly weaker Asian markets on Wednesday
The threat of political deadlock in the US over another stimulus package is threatening sentiment, but there is the hope of a vaccine
The JSE faces weaker Asian markets on Wednesday, with some focus on US politics, amid an apparent deadlock over a Covid-19 stimulus package.
National Australia Bank analyst Rodrigo Catril said in a note that there is the hope that US politicians will look to restart negotiations on a new fiscal stimulus this week. “Now, with no talks scheduled, the deadlock between Republicans and Democrats is at risk of dragging on for weeks.”
The chance of a Covid-19 vaccine is bolstering markets, with Russia announcing it has approved a vaccine, though analysts noted the vaccine has not completed phase 3 trials.
In morning trade, the Shanghai Composite was down 1.99% while the Nikkei was up 0.42%.
Tencent, which gives direction to the JSE via Naspers, was up 0.78%.
Gold was down 1.45% to $1,885/oz while platinum had fallen 1.33% to $928.52. Brent crude was 0.38% higher at $44.68 a barrel.
The rand was 0.43% weaker at R17.55/$.
UK GDP numbers for the second quarter are due later, while locally, retail sales numbers for June could also give some indication of SA’s economic recovery.
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