JSE faces mixed Asian markets on Monday as trade war jitters resurface
US moves to restrict exports to China’s largest chipmaker hits sentiment
The JSE looks set to contend with mixed Asian markets on Monday morning, with trade war jitters eroding sentiment.
The US has moved to bar exports to Chinese chipmaker SMIC, raising the prospect of retaliation from Beijing.
“That news shows US and China angst is alive and well, and is likely to weigh on Mainland equity markets today [Monday], despite the strong session on Wall Street on Friday,” said Oanda senior market analyst Jeffrey Halley in a note.
Focus is also on rising Covid-19 numbers in Europe, where some countries may reinstitute lockdown restrictions in the week ahead.
In morning trade the Shanghai Composite was down 0.2% while the Hang Seng Had added 0.74%.
Tencent, which influences the JSE via Naspers, had risen 0.2%.
The rand was 0.3% firmer at R17.06 a dollar.
Gold was 0.25% firmer at $1,865.67 an ounce while platinum had risen 1.04% to $855.29. Brent crude was 0.43% down at $41.60 a barrel.
Forestry group York Timber is due to report a sharp fall in profits for its year to end-June later, while technology group Alviva Holdings is also expected to report pressure for the same period.
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