JSE faces weaker Asian markets on Monday as war in Ukraine continues

The JSE looks set to open to weaker Asian markets on Monday, with the focus very much on the Ukraine, as investors consider the effects of severe sanctions against Russia.

Global markets showed recovery on Friday, after plunging on Thursday following the invasion, with extreme levels of uncertainty persisting.

Ukraine and Russia are gearing up for talks this week, while the G7 is meeting on Tuesday with the possibility of more efforts to isolate Russia.

Markets are also waking up to news that Russian nuclear forces are on high alert, said National Australia Bank analyst Ray Attrill in a note, but there also appears to be a lack of support from Russians themselves for the actions of their government.

So far the West hasn't completely cut off Russia sales of grains and energy, but it will slowly be reduced, while only certain banks have been cut off from the global international payments system SWIFT. The lack of immediate severe sanctions helped lift sentiment on Friday.

In morning trade on Monday oil jumped 4.52% to $102.86 a barrel, while the rand was 1.52% weaker at R15.35/$, having firmed 1.35% on Friday.

The Hang Seng was down 1.38%, Japan's Nikkei 0.47% and the Shanghai Composite 0.14%.

Gold was up 0.92% to $1,906.30/oz while platinum added 0.17% to $1,059.

Harmony Gold is due to release its results for the six months to end-December later, having said in a recent trading update headline earnings per share are expected to fall as much as 72%, partly due to currency effects and higher production costs.

RCL Foods is due to report a profit rise in its half year to end-December later, partly due to higher Covid-19 costs in the prior comparative period.

gernetzkyk@businesslive.co.za