JSE faces positive Asian markets on Wednesday as Omicron fears abate
US markets bounced back overnight after an Omicron-induced losing streak, but volatility is expected to remain high due to the holidays
The JSE looks set to open to higher Asian markets on Wednesday morning, with sentiment boosted by a recovery for US markets after an Omicron-induced sell-off in recent sessions.
Omicron now accounts for almost three quarters of new Covid-19 cases in the world’s largest economy, but the news flow on this has eased, while President Joe Biden on Tuesday indicated that talks would continue as his administration tries to get its $2-trillion (R32-trillion) Build Back Better spending plan through Congress.
“US markets were on fire overnight as a slowdown in Omicron headlines irresistibly led the fast-money herd into a buy-the-dip frenzy,” Oanda senior market analyst Jeffrey Halley said in a note.
Halley said markets remained volatile, given that they were being driven by headlines, and liquidity remains low due to the holiday period.
The Dow Jones Index gained 1.6% overnight while the tech-heavy Nasdaq added 2.4%.
In morning trade on Wednesday the Shanghai Composite was up 0.9% and the Hang Seng 0.4%.
Tencent, which can give direction to the JSE via the Naspers stable, was up 0.68%.
The rand was 0.32% weaker at R15.88/$, remaining steady over the past week.
The local corporate and economic calendar is bare on Wednesday.
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