JSE faces muted Asian markets on Tuesday as investors wait on fresh catalysts

The JSE looks set to contend with subdued Asian markets on Tuesday morning, with an absence of major data releases preventing any clear direction.

US markets were at record highs overnight, lifted by the passage of a $1.2-trillion infrastructure bill.

“With nothing of note to sink its teeth into, the street continued moving back into its happy place, interest rates lower for longer, buy-everything except for the US dollar,” said Oanda senior market analyst Jeffrey Halley in a note.

The rand firmed back below R15/$ on Monday, and in morning trade on Tuesday the local currency was flat at R14.92/$.

Japan’s Nikkei lost 0.73%, while the Hang Seng and Shanghai Composite were little changed. Tencent, which can give direction to the JSE via the Naspers stable, slipped 0.39%.

Gold was flat at $1,823/oz, while platinum was 1.29% higher at $1,046.49. Brent crude was 0.42% weaker at $83.32 a barrel.

Locally the economic calendar is bare, with attention instead on Eskom, as stage four load-shedding continues.

Telkom, SA’s third-biggest mobile operator, is expected to report a rise in headline earnings per share of up to 35% in the six months to end-September. Telkom said in a recent trading update it had benefited from a fall in finance costs, while foreign-exchange losses also declined year on year.

Internationally, US producer inflation numbers for October are due later. Consumer inflation numbers for the same month are due on Wednesday, and will be closely watched as investors consider the pace of monetary policy tightening in the world’s largest economy.

gernetzkyk@businesslive.co.za