JSE. Picture: MICHAEL ETTERSHANK
JSE. Picture: MICHAEL ETTERSHANK

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.

gernetzkyk@businesslive.co.za

Would you like to comment on this article or view other readers' comments?
Register (it’s quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.