JSE faces subdued Asian markets on Tuesday as Covid-19 focus continues
The JSE faces muted Asian markets on Tuesday morning, amid positive vaccine news, but also rising Covid-19 numbers in the US.
Sentiment was boosted on Monday by news that AstraZeneca's Covid-19 vaccine, produced in conjunction with Oxford University, was up to 90% efficacious. This follows announcements of positive results by both the candidate put forward by BioNtech and Pfizer, as well as one by Moderna.
European stocks were under pressure on Monday, however, not withstanding the AstraZeneca news, suggesting that a lot of positive vaccine-related news is now in the price, National Australia Bank analyst David de Garis said in a note.
“There was also not much support from news that social-distancing restrictions will be eased in time for the Christmas holiday period,” De Garis said.
In morning trade on Tuesday, the Hang Seng and Shanghai Composite were flat, while Japan’s Nikkei was up 2.7%, having been closed on Monday for a public holiday.
Gold was 0.64% weaker at $1,825.71/oz, while platinum had risen 0.92% to $935.34. Brent crude was 1.38% higher at $43.48 a barrel.
The rand was flat at R15.39/$.
Momentum Metropolitan Holdings is scheduled to give an update on its first quarter to end-September. The financial services group could give details regarding the ongoing threat of business interruption claims due to Covid-19, having put aside R600m for subsidiary Guardrisk for its six months to end June.
Coronation Fund Managers is scheduled to release its results for the year to end-September later, saying in a trading update it expects headline earnings per share to rise by 10%-20%.
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