JSE faces mostly weaker Asian markets on Monday
Concerns of a second wave of Covid-19 in Europe and US-China trade war risks weigh on sentiment
The JSE faces weaker Asian markets on Monday morning, with rising Covid-19 cases in Europe prompting concern about a global economic recovery.
After the initial bounce from full-blown lockdowns, Europe’s economic trajectory could be entering a gloomy second phase characterised by ongoing social distancing, elevated unemployment, and increasing damage to the supply side, said AxiCorp chief global markets strategist Stephen Innes in a note.
US-China trade tension is also on the agenda in a week with little global economic data, with the US courts on Sunday granting an injunction against a ban of WeChat.
In morning trade the Shanghai Composite was down 0.45% and the Hang Seng 0.95%.
Tencent, which influences the JSE via Naspers, had fallen 1.2%.
Gold was flat at $1,953.30 an ounce while platinum had risen 1.5% to $939.50. Brent crude was 0.23% firmer at $43.16 a barrel.
The rand was 0.29% firmer at R16.25 a dollar.
Aluminium group Hulamin is expected to report pressure on profits for its six months to end-June later on Monday, having recently warned the Covid-19 lockdown negatively affected its manufacturing activity.
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