JSE could rebound in line with global markets
Asia stocks set to recover after Hong Kong’s Hang Seng index dipped into a technical correction
JSE could pop higher on Friday morning, taking its cue from Asia where stocks were on the road to recovery after a bumpy week, which saw Hong Kong’s Hang Seng index dip into a technical correction, loosely defined as the drop of 10% from the recent highs.
Share markets have had a solid start to the year, with the JSE all share index hitting a series of record highs, amid optimism of a rebound in the world economic activity after the setback caused by Covid-19.
But the recent spike in US Treasury yields took a shine off US tech stocks in particular, which some have perceived to be overbought. The yields on the US 10-year note have since settled back and are now at 1.62%, having risen to as high as 1.70% early this month, which was the highest in 13 months.
Hong Kong’s Hang Seng was up 1.31% and Japan’s 1.57%. This could set a positive tone for the local share market, which is hovering at the lowest level in two months.
The rand, which is the barometer of risk sentiment was slightly stronger in early trade after weakening through R15/$ for the first time in about three weeks on Thursday as a result of a stronger dollar.
The spot price of Brent crude, which fell to its lowest level in seven weeks earlier in the week, helping to ease concerns on global inflation, rebounded 1% to $62 a barrel.
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