Easing Covid-19 limits could boost JSE on Monday

The JSE could take its lead from firmer Asian markets on Monday morning, with risk assets still finding favour as many countries move to ease Covid-19 restrictions.

US jobs data on Friday was better than expected, despite it showing that more than 20-million jobs were lost in the world’s largest economy in April.

Sentiment has also been boosted by hopes that an escalation in trade tension between the US and China can be avoided, and promises of unprecedented easy monetary conditions.

In morning trade on Monday Hong Kong’s Hang Seng had risen 1.97% while Japan’s Nikkei was up 1.52%.

Tencent was up 2.34%, and could give direction to Naspers, its largest single shareholder.

Gold was up 0.3% to $1,706.09 an ounce while platinum had firmed 0.67% to $770.60 an ounce. Brent crude was down 0.39% to $30.72.

The rand was 0.47% firmer at R18.24 a dollar.

Focus on Monday is on any signals on future global monetary policy, and Covid-19-related news.

“With no major data releases today, we will be keeping an eye on the potential second wave of the outbreak in China, while monitoring the reopening of economies globally,” said Peregrine Treasury Solutions executive director Bianca Botes in a note.

Vodacom is expected to release its results for its year to end-March later on Monday. The mobile operator should give an update on how the pandemic is affecting its business.

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Source: businesslive.co.za