The JSE looks set to contend with mixed Asian markets on Wednesday morning, with a risk-off tone prevailing on US markets overnight.

US markets rotated into the perceived safety of big-tech overnight, Oanda senior market analyst Jeffrey Halley said in a note. This pushed the S&P 500 and Dow Jones lower, while the tech-heavy Nasdaq held steady.

While reasons for this aren't exactly clear, it appears that US markets are concerned about the post-pandemic recovery being somewhat less exuberant than hoped, Halley said.

There are no major global economic releases scheduled on Wednesday, while the European Central Bank is set to make its latest policy announcement on Thursday, which will be watched as global central banks consider scaling back support measures.

In morning trade, the Shanghai Composite was flat, the Hang Seng had fallen 0.53% and Japan's Nikkei had gained 0.45%.

Tencent, of which the Naspers stable is the single-biggest shareholder, was little changed.

Gold was up 0.19% to $1,797.48/oz while platinum had added 0.47% to $1,004.20. Brent crude was 0.11% higher at $71.65 a barrel.

The rand was flat at R14.29/$.

Momentum Metropolitan Holdings is due to report a fall in headline earnings per share of up to 70% in its year to end-June later, saying in a recent trading update that mortality claims had been higher than initially expected as SA grappled with a third wave of Covid-19.

Consumer goods group Libstar is due to report a fall in headline earnings per share in its six months to end June later on Wednesday, saying in a recent trading update it had been adversely affected by currency movements.



Would you like to comment on this article or view other readers' comments?
Register (it’s quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.