JSE faces subdued Asian markets on Wednesday
Signs of a possible US stimulus deal have boosted sentiment, though there is also some caution in the market
The JSE faces mostly little changed Asian markets on Wednesday morning, though US stocks pushed to new records overnight, lifted by signs of a possible agreement on another stimulus package.
A bipartisan group of US legislators on Tuesday unveiled a compromise $900bn stimulus package, boosting the hope that new measures will be in place soon to help shore up the faltering US economy.
After Asia woke to the sound of stimulus sirens. Axi chief global markets strategist Stephen Innes said in a note that it has been a bit of a “wait and see” show, however, the signs are encouraging.
In morning trade the Shanghai Composite and Japan’s Nikkei were little changed, as was the Hang Seng.
Tencent, which often gives direction to the JSE through Naspers, its largest single shareholder, had fallen 0.69%.
Gold was down 0.27% to $1,810.01/oz while platinum fell 0.89% to $989.64. Brent crude was 0.42% lower at $47.04 a barrel.
The rand was 0.12% weaker at R15.25/$, having firmed 1.3% on Tuesday. The rand managed to claw back lost ground as US stimulus talks resumed for the first time post-election, Peregrine Treasury Solutions executive director Bianca Botes said in a note.
The economic calendar is bare on Wednesday, while in corporate news, technology group EOH is expected to report that its headline loss per share improved by as much as 76% in its year to end-July, with the group saying it had made progress in reducing costs. The previous financial year had included one-off costs, including R2.26bn in writedowns.
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