JSE to contend with subdued Asian markets on Tuesday as oil spikes

The JSE looks ,set to open to mixed Asian markets on Tuesday morning, as traders grapple with a spike in oil prices, while Covid-19 outbreaks threaten recoveries in countries such as Malaysia, Indonesia and the Philippines.

Oil cartel Opec, along with its allies, failed to reach an agreement on Monday, with the United Arab Emirates (UAE) still the hold out on an output agreement.

Brent crude oil rose 1.27% to $77.08 a barrel on Monday, adding a further 0.54% to $77.50 on Tuesday morning, its highest level since October 2018. Brent crude has now risen almost 50% so far in 2021, and SA motorists are already facing the prospect of record high petrol prices on Wednesday, when new hikes take effect.

Locally, focus is on Covid-19, as Gauteng, in particular, grapples with a third wave of the pandemic that has proved worse than the first two.

Former president Jacob Zuma’s application to have his arrest interdicted will be heard on Tuesday in the Pietermaritzburg high court.

In morning trade the Hang Seng was down 0.58% and the Shanghai Composite 0.53%, while Japan’s Nikkei had gained 0.34%.

Tencent, which gives direction to the JSE via the Naspers stable, had gained 0.45%.

Gold was 0.39% higher at $1,798.20/oz while platinum had risen 0.59% to $1,108.05.

The rand was flat at R14.23/$, having recovered since Friday, when it touched R14.50/$.

The local corporate and economic calendar is bare on Tuesday.

gernetzkyk@businesslive.co.za