JSE set to rebound as global markets stabilise

The JSE is likely to rebound on Friday after a fairly sharp sell-off that dragged the all share index to its lowest level since late January.

The potential rebound in the local share market will be in step with other global markets, which showed signs of stability after coming off aggressively in response to escalating conflict between Russia and Ukraine.

Japan’s Nikkei 225 recovered about 1.50%, but Australia’s ASX 200 was relatively flat while Hong Kong’s Hang Seng was marginally lower.

Wall Street provided a semblance of stability to global stocks even as US President Joe Biden announced the imposition of sanctions against Russia. The sanctions included limiting Russia’s ability to conduct business in dollars, euro, pounds and the yen.

Tech-heavy Nasdaq led the recovery on Wall Street on Thursday night, after earlier in the session falling as much as 3% to satisfy a technical definition of so-called bear market territory —  a drop of 20% or more below record levels. 

With Russia’s invasion of Ukraine casting a pall on global markets and a broader global economy, some in the market believe that the US Federal Reserve may not be aggressive in raising interest rates.

Elsewhere, the rand was stronger against the dollar, reflecting the improvement in global risk appetite. SA’s currency fetched the greenback at R15.26/$, up 0.60% on the day.

Brent crude held above the psychological level of $100 per barrel, up 1.63%.

mahlangua@businesslive.co.za