JSE could feel pressure as Donald Trump ends stimulus talks
The US president has halted discussions on a second round of stimulus until after the election
The JSE could take its lead from mostly subdued Asian markets on Wednesday, with sentiment taking a knock after US President Donald Trump pulled out of stimulus talks.
Markets have recently been pricing in a second round of stimulus in the world’s largest economy, which comes as the US Federal Reserve continues to warn that it has already done most of what it can to offset the effects of the pandemic.
While the reaction on markets was predictable, there may still be a deal, Oanda senior market analyst Jeffrey Halley said in a note.
“One of Trump’s favourite negotiating tactics, judging by past actions, is to walk away from the negotiating table abruptly,” Halley said.
Locally, public-sector unions are embarking on a one-day strike in protest against the government’s failure to implement wage increases.
In morning trade, Japan's Nikkei was down 0.2% while Australia's all ordinaries index was up 1.1%.
Gold was up 0.24% to $1,882.43/oz, having fallen 1.7% on Tuesday. Platinum had risen 1.44% to $862.44, having slumped 4.25% in the previous session.
Brent crude was up 0.17% to $41.96 a barrel.
The rand had firmed 0.45% to R16.65/$, having lost 0.87% overnight.
There is little on the local corporate or economic calendar on Wednesday.
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