JSE faces mixed Asian markets on Monday as inflation concerns persist
Bourses posted an eighth consecutive week of losses last week despite ending fairly strongly
23 May 2022 - 07:26
byKarl Gernetzky
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
The JSE looks set to contend with mixed, but mostly lower Asian markets on Monday morning, with investors still jittery about elevated inflation and a darkening global economic outlook.
Asian markets ended last week fairly strongly, boosted by a surprise cut in lending costs in China, while US markets also showed some resilience, but still posted an eighth consecutive week of losses.
Sentiment remains extremely fragile due to concerns high interest rates will result in a recession later this year. The local bourse may also benefit from an announcement late on Friday that ratings agency S&P Global Ratings has bumped up the outlook on SA's sovereign debt to positive, but it remains in junk status.
Favourable terms of trade were cited by the ratings agency.
Focus this week will be on economic data and corporate earnings reports out of the US, with inflation data from the same country, as investors consider the extent of damage due to price pressures and supply chain disruptions.
In morning trade the hang seng was down 1.88% and the Shanghai composite 0.47%, while Japan's nikkei gained 0.7%.
Tencent, which can influence the JSE via the Naspers stable, lost 2.56%.
Gold was up 0.41% to $1,854.25/oz while platinum rose 0.72% to $960.98. Brent crude was 1.82% higher at $113.28 a barrel.
Private hospital operator Netcare is due to release its results for the six months to end-March later, saying in a recent trading update that occupancy levels had improved and headline earnings per share (Heps) could rise a fifth year on year.
Pharmacy group Dis-Chem is due to release its results for the year to end-February later, saying in a recent trading update that after-tax profits will rise more than a quarter, with July's civil unrest having a limited impact.
Diversified industrial group Barloworld, which is due to report a surge in profits for its half-year to end-March later, has flagged a bounce back in car rentals in recent trading updates.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
JSE faces mixed Asian markets on Monday as inflation concerns persist
Bourses posted an eighth consecutive week of losses last week despite ending fairly strongly
The JSE looks set to contend with mixed, but mostly lower Asian markets on Monday morning, with investors still jittery about elevated inflation and a darkening global economic outlook.
Asian markets ended last week fairly strongly, boosted by a surprise cut in lending costs in China, while US markets also showed some resilience, but still posted an eighth consecutive week of losses.
Sentiment remains extremely fragile due to concerns high interest rates will result in a recession later this year. The local bourse may also benefit from an announcement late on Friday that ratings agency S&P Global Ratings has bumped up the outlook on SA's sovereign debt to positive, but it remains in junk status.
Favourable terms of trade were cited by the ratings agency.
Focus this week will be on economic data and corporate earnings reports out of the US, with inflation data from the same country, as investors consider the extent of damage due to price pressures and supply chain disruptions.
In morning trade the hang seng was down 1.88% and the Shanghai composite 0.47%, while Japan's nikkei gained 0.7%.
Tencent, which can influence the JSE via the Naspers stable, lost 2.56%.
Gold was up 0.41% to $1,854.25/oz while platinum rose 0.72% to $960.98. Brent crude was 1.82% higher at $113.28 a barrel.
Private hospital operator Netcare is due to release its results for the six months to end-March later, saying in a recent trading update that occupancy levels had improved and headline earnings per share (Heps) could rise a fifth year on year.
Pharmacy group Dis-Chem is due to release its results for the year to end-February later, saying in a recent trading update that after-tax profits will rise more than a quarter, with July's civil unrest having a limited impact.
Diversified industrial group Barloworld, which is due to report a surge in profits for its half-year to end-March later, has flagged a bounce back in car rentals in recent trading updates.
gernetzkyk@businesslive.co.za
MARKET WRAP: Richemont leads losses on the JSE
Market data — May 22 2022
Global stocks rebound after China cuts key mortgage rate
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
Oil falls on global growth concerns
JSE to open to positive Asian markets on Friday amid Chinese policy support
Gold on track for weekly gain amid weaker dollar
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.