JSE to contend with muted Asian markets on Friday as investors await catalysts

The JSE faces mixed, and somewhat muted, Asian markets on Friday with investors eyeing the threat posed by Covid-19, and waiting for further clues about the future of US monetary policy.

The timing of the US Federal Reserve’s tapering of its monetary stimulus remains a key theme on markets, with consumer inflation from that country meeting expectations this week, though producer inflation numbers came in higher than expected — showing the continued effect of supply-chain disruptions.

The Delta variant of the coronavirus is also posing a threat to the global economic recovery, with China moving to conduct mass testing and implement lockdowns in badly affected regions.

“It’s a struggle to identify a dominant theme in markets overnight, perhaps not too surprisingly given we’re in the midst of the northern hemisphere summer holiday season and, dare I say it, market are apt to meander through August as we await what should be some year-defining market events in September”, National Australia Bank analyst Ray Attrill said in a note.

In morning trade on Friday the Hang Seng was down 0.72% and the Shanghai Composite 0.25%, while Japan’s Nikkei was flat.

Tencent, which can give direction to the local bourse via the Naspers stable, had fallen 2.82%.

Gold was up 0.12% to $1,754.58/oz while platinum was flat at $1,020,66/oz. Brent crude was 0.38% weaker at $70.88 a barrel.

The rand was little changed at R14.77/$,

Thungela Resources, the coal miner spun off from Anglo American, is due to release its half-year results to end-June later.

Thungela’s listing in early June came after Anglo won approval for the demerger and separate listing of its remaining SA coal assets to create a leading thermal coal exporter.

gernetzkyk@businesslive.co.za