JSE faces subdued Asian markets on Tuesday as focus remains on US
All eyes are on US negotiations over a second stimulus package to offset the economic impact of Covid-19
The JSE all share faces subdued Asian markets on Tuesday, with focus still on US politics, notably the prospects of a second fiscal stimulus agreement between political parties.
Tuesday marks a deadline set by House speaker Nancy Pelosi for a pre-election stimulus deal, with no sign of a breakthrough yet.
“President Donald Trump is pushing for a deal and the White House is cautiously optimistic. But the sell-off in stocks is a sign that investors don’t believe that there’s enough political support in Congress to support a new package,” said BK Asset Management MD of foreign exchange strategy Kathy Lien in a note.
In morning trade Japan’s Nikkei was down 0.4% and the Shanghai Composite 0.13%.
Tencent, which influences the JSE via Naspers, had lost 0.18%.
Gold was down 0.17% to $1,900.71/oz, while platinum had fallen 0.42% to $856.46. Brent crude was 0.4% weaker at $42.27 a barrel.
The rand was 0.16% weaker at R16.54/$.
Pick n Pay is due to release its results for the six months to end-August later on Tuesday. The group said in a trading update it expects headline earnings per share to fall between 50% and 60% for the period.
The SA Reserve Bank’s composite leading business cycle indicator for August is due later. The leading indicator shows a projection of SA’s economic growth cycle for the next six to 12 months.
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