JSE faces mixed Asian markets on Tuesday as investors eye Fed meeting
The JSE looks set to contend with mixed Asian markets on Tuesday morning, with global focus squarely on the US Federal Reserve policy announcement on Wednesday.
The world’s most influential central bank is expected to announce plans to pare back monetary policy support on Wednesday, adding an element of caution to trade.
US markets were at record highs overnight, and have been lifted by upbeat corporate earnings reports, with Oanda senior market analyst Jeffrey Halley saying in a note a deal between the EU and US on ending tariffs on aluminium and steel had also boosted sentiment.
Locally, focus is on the results of the municipal elections, with early indications that the ANC has seen a slip in support, which some analysts warn could make efforts at the state level to rein in spending more difficult.
In morning trade the Hang Seng was up 0.74%, while the Shanghai Composite had given back 0.62% and Japan’s Nikkei 0.4%.
Tencent, which can influence the direction of the JSE through the Naspers stable, had fallen 0.3%.
Gold was flat at $1,793.08/oz while platinum had fallen 0.87% to $1,058.04. Brent crude was 0.3% higher at $84.78 a barrel.
The rand was 0.37% weaker at R15.46/$, having lost 84c over the past week.
Local focus is expected to remain on the election results, while the corporate calendar is light.
Property group Octodec Investments is due to release its results for the year to end-August later, indicating in a recent trading update distributable income per share is expected to decline, though it did not go into details.
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