JSE to contend with muted Asian markets on Tuesday after overnight US gains
Global markets had a strong start to the week on vaccine and stimulus hopes, but now investors await fresh catalysts
The JSE looks set to contend with slightly weaker Asian markets on Tuesday, after a strong performance for equities on Monday.
Progress on Covid-19 vaccines and in the passing of a US stimulus bill boosted sentiment on Monday, with global markets recovering after a sharp sell-off late last week stemming from concerns about rising inflation.
Asian markets appear to be taking a breather on Tuesday morning, having led the global equity recovery yesterday, said Oanda senior market analyst Jeffrey Halley in a note.
Halley added that the market probably had not seen the last of the volatility stemming from inflation concerns. “Even though the inflation itself is the good cholesterol type, and not the artery hardening wage/price stagnation type,” he said.
In morning trade the Shanghai Composite was down 0.99% and the Hang Seng 0.66%.
Tencent, which gives direction to the JSE through the Naspers stable, was up 1.79%.
Gold was 0.61% weaker at $1,714.28/oz, while platinum had fallen 0.72% to $1,179.59. Brent crude was 0.57% weaker at $57.59 a barrel.
Restaurant group Spur is expected to report headline earnings per share fell by about three quarters in its six months to end-December as it grapples with the fallout from Covid-19.
Building materials group Cashbuild is set to report a sharp rise in profits for its six months to December 27, with a number of retailers reporting a pandemic boost to home improvement.
Wilson Bayly Holmes Ovcon (WBHO) is expected to report a hefty fall in profits in its six months to end-December, saying in a recent trading update it incurred one-off costs related to its unsuccessful sale of Probuild in Australia.
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