JSE faces mixed Asian markets on Monday as rand hovers at R17/$

The JSE looks set to join a mixed session for Asian markets on Monday morning, with the rand hovering at R17/$, taking a hit from signs the worst is yet to come in terms of interest rate hikes.

Minutes from the US Federal Reserve's most recent policy meeting confirmed a hawkish stance towards inflation, offering the prospect of restrictive monetary policy for an extended period to bring inflation back to about 2%, from 8.5% in July.

Global markets have been in recovery mode over the past few weeks, also boosted by better-than-expected earnings reports from US companies.

Data showed on Friday inflation in the eurozone hit a record 8.9% in July, while markets will be closely watching the Jackson Hole symposium in the US this week, with Fed chair Jerome Powell set to give a speech on Friday.

In morning trade Japan's nikkei was down 0.48%, while the Shanghai composite gained 0.57% and the hang seng 0.18%.

Tencent, important to the JSE due to Naspers, fell 0.13%.

Gold was flat at $1,745.40/oz while platinum rose 0.38% to $895.70. Brent crude was down 0.32% to $95.45/$.

The rand was flat at R17/$, having lost about 60c since the same time last week, with the dollar in favour as investors reconsider the path of Fed hikes.

Training and staffing group Workforce Holdings is due to release its results for the six months to end-June later, flagging a rise in headline earnings per share of up to 35%, though it didn't go into details.  

gernetzkyk@businesslive.co.za