Picture: 123RF/SOLAR SEVEN
Picture: 123RF/SOLAR SEVEN

The JSE could be in store for a recovery on Friday morning, with US markets higher overnight as stocks recovered from a sharp sell-off in previous sessions.

The JSE joined a global sell-off on Thursday, having its worst day in almost three months, after US data showed inflation in April was at an almost 13-year high, spooking investors.

There have been concerns in the market in 2021 that lavish fiscal stimulus and easy-money conditions will push up prices, forcing the US Federal Reserve to act sooner than its guidance.

The torpor that set in after the US inflation scare that jolted US markets on Wednesday had dissipated, National Australia Bank analyst David de Garis said in a note.

A number of Fed officials repeated their stance that they viewed inflationary pressures as transitory, and will not be reacting to temporary overshoots. There is also optimism over the reopening of the US economy, including news that those vaccinated in the US will no longer have to wear masks.

In morning trade Japan’s Nikkei had risen 2.06% and the Shanghai Composite 1.21%, while the Hang Seng was up 0.95%.

Tencent, which gives direction to the local bourse through the Naspers stable, had added 1.21%.

Gold was 0.2% weaker at $1,822.39/oz while platinum rose 1.08% to $1,217.51. Brent crude was 0.33% weaker at $66.77 a barrel.

The rand was 0.18% firmer at R14.12/$.

The corporate and economic calendar is bare on Friday, with focus expected to be offshore, though there are some concerns over rising Covid-19 numbers in SA.

gernetzkyk@businesslive.co.za

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