JSE to contend with subdued Asian markets on Monday
Closed bourses and rising Covid-19 numbers in some countries weigh on trade
The JSE starts off the new week to cautious trade, with some major Asian markets closed for public holidays, while surging Covid-19 numbers in countries including India is further diminishing sentiment.
India has reported more than 400,000 daily Covid-19 infections for the first time, with the outbreak in that country and in other parts of Asian contrasting with an escalating vaccine rollout in other parts of the world, including Europe.
Global markets were generally lower on Friday. It may have partly attributed to month-end rebalancing, though it had a positive April.
Comments from Federal Reserve Bank of Dallas president Robert Kaplan that the Fed should start talking about tapering bond purchases soon, may have wrong-footed markets a little, said Oanda senior market analyst Jeffrey Halley in a note.
“If anything, the price action suggests that investors are nervous at these heady levels and hypersensitive to any tapering headlines, no matter how who makes them,” said Halley.
Month-end rebalancing flows probably explained most of the price-moves on Friday, he said.
Markets in mainland China and Japan are closed for Golden Week, which continues until Thursday, while the UK is also enjoying a public holiday.
In morning trade the Australian all ordinaries index fell 0.12%, while South Korea’s Kospi was 0.2% lower.
Gold was up 0.30% at $1,774.39/oz while platinum gained 0.33% to $1,205.49. Brent crude was 2.96% lower at $66.48 a barrel.
The rand was flat at R14.48/$.
There is little on the local corporate calendar on Monday, while in economic news, Absa’s manufacturing purchasing managers’ index for April is due later.
The survey is expected to show continued growth in the manufacturing sector after the easing of lockdown conditions in March, and due to a generally supportive global economic backdrop.
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