JSE faces subdued Asian markets ahead of medium-term budget
Global focus is on Covid-19 and US politics, while locally traders await details on the state of SA’s finances
The JSE faces mixed, but muted, Asian trade on Wednesday morning, with focus squarely on the medium-term budget policy statement later.
Finance minister Tito Mboweni is expected to clarify how the state intends to balance a need for economic stimulus in the wake of Covid-19, while still bailing out ailing state-owned enterprises.
“The budget framework is sure to attract the attention of both investors and ratings agencies as SA continues to grapple with sluggish economic growth, and a looming sovereign debt crisis,” Peregrine Treasury Solutions executive director Bianca Botes said in a note.
Internationally, focus remains on the Covid-19 pandemic, as a new wave of infections sweeps across Europe and the US.
In morning trade the Shanghai Composite was up 0.16%, while Hong Kong’s Hang Seng fell 0.25%.
Tencent, which gives direction to the JSE via its single-largest shareholder Naspers, added 1.97%.
Gold was flat at $1,907.48/oz while platinum rose 0.27% to $884.19. Brent crude was 0.64% weaker at $40.43 a barrel.
The rand was little changed at R16.19/$.
There is little on the corporate calendar on Wednesday, with Mboweni set to address the nation at 2pm.
Inflation numbers for September are due later, and are expected to show the effects of lower fuel prices.
LISTEN | Dissecting Mboweni's MTBPS with Investec's Annabel Bishop
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