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An employee passes share price information displayed on an electronic ticker board inside the London Stock Exchange Group’s offices in London, the UK. Picture: BLOOMBERG VIA GETTY IMAGES/LUKE MACGREGOR
An employee passes share price information displayed on an electronic ticker board inside the London Stock Exchange Group’s offices in London, the UK. Picture: BLOOMBERG VIA GETTY IMAGES/LUKE MACGREGOR

The JSE looks set to open to mixed Asian markets on Wednesday morning, with markets digesting some mixed economic data, including another record high for eurozone inflation.

Inflation in the Eurozone accelerated to 8.1% month on month in May, faster than expected, while markets are also considering news of a partial ban of Russian oil imports, which could add to price pressures.

Oil eased significantly on Tuesday, however, and reports are circulating that oil cartel Opec is weighing suspending Russia from its production deal, SPI Asset Management managing partner Stephen Innes said in a note.

Some members in the Persian Gulf are expected to ramp up output increases if the above suspension is carried out, and the expectation of more supply hitting the market, even after cutting Russia out, could be fuelling some of the sell-off as oil gave up its post-EU embargo bounce, he said.

Earlier, China’s official manufacturing purchasing managers index (PMI) came in a little stronger than expected, but remained in contractionary territory.

June marks a new month for trade after a volatile May, when inflation concerns and the fear of a recession weighed on riskier assets, though a recovery was staged towards the end of the month.

The JSE edged up on Tuesday, a fourth consecutive session of gains, but fell almost 0.5% in May, with precious metals miners giving back almost 11%.

In morning trade on Wednesday the Hang Seng was down 0.65% and the Shanghai Composite was flat, while Japan’s Nikkei gained 0.67%.

Tencent, which influences the JSE through the Naspers stable, a major shareholder, dipped 0.28%.

Gold was 0.2% weaker at $1,833.63/oz while platinum rose 0.14% to $970.78. Brent crude eased 0.22% to $115.96 a barrel, having slipped 4.4% on Tuesday.

Locally, Absa’s PMI for May is expected to show continued improvement in SA’s manufacturing sector activity, recovering from intense flooding in KwaZulu-Natal in April.

The corporate calendar is bare on Tuesday.

gernetzkyk@businesslive.co.za

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