Picture: BLOOMBERG/WALDO SWIEGERS
Picture: BLOOMBERG/WALDO SWIEGERS

The JSE could rebound on Tuesday amid signs of stability on global markets.

While Asian stock markets were still on edge amid rising Covid-19 cases fuelled by the coronavirus Delta variant, stock futures in Europe and Wall Street suggested that these markets could bounce back, after a sharply weaker session on Monday.

Commodity prices also steadied, after dropping sharply as investors pondered the implications of rising cases on global growth.

The spot price of Brent marginally up (0.13%) to $68.84 a barrel, after falling by up to 7%,  hobbled by demand concerns and after oil cartel Opec decided to ramp up output.

The lower international prices is positive for SA as it a net importer of the commodity. The rand, meanwhile, was resilient against the dollar despite a market rout over the past 24 hours.

The local currency held steady at R14.55/$, having recovered from the three-month lows of R14.70/$ touched last week in the week the social unrest.

JSE-listed mining stocks are also likely to recover after bearing the brunt of the lower commodity prices, while retailers could make a comeback after selling off last week in the wake of social unrest. On Monday, the JSE all share fell 2.59%.

Elsewhere,  the US treasury bonds were well supported, given the bout risk-off environment over the last 24 hours. The yield on the US treasury note was last 1.19%, the lowest level since February.

mahlangua@businesslive.co.za

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