JSE could benefit from recovering Asian markets on Friday

The JSE looks set to open to positive Asian markets on Friday morning, with riskier assets still showing signs of recovery after recession fears spooked investors.

Focus has been on testimony by US Federal Reserve chair Jerome Powell this week to Congress, with the head of the world’s most influential central bank telling legislators while a recession is a possibility, it isn’t likely.

US markets pushed higher overnight, though the JSE had fallen on Thursday. The local bourse only needs to gain about 100 points, or 0.15%, to close where it did last Friday.

“The moves this week, could still turn out to be the result of a financial market genetically preprogrammed to buy dips in equity and bond prices, thanks to two decades of central bank largesse,” Oanda senior market analyst Jeffrey Halley in a note.

“It could also be a bear market correction as the stampede for the exit door got overdone in the short term, leading to a short-squeeze,” he said.

In morning trade the Hang Seng was up 1.44%, Japan’s Nikkei 1.03% and the Shanghai Composite 0.44%.

Tencent, important to the JSE due to the Naspers stable, had gained 1.12%. 

The rand was 0.31% firmer at R15.90/$.

Gold was little changed at $1,824.06/oz while platinum had risen 1.15% to $917. Brent crude was up 0.42% to $110.09 a barrel.

The local economic and corporate calendars are bare on Friday.

gernetzkyk@businesslive.co.za