Higher Asian markets could boost JSE on Monday as US political uncertainty fades
The JSE may benefit from sharply higher Asian markets on Monday morning, as the US election heads to a resolution, with Democratic candidate Joe Biden looking set to take the White House.
Incumbent Donald Trump is pursuing legal challenges and recounts loom, while the Republicans look likely to retain the Senate, though run-off elections are still to be held in January.
This combination is likely to mean that a Biden Presidency’s ambitions will be curtailed in a gridlocked political scene with very few landmark legislative changes being enacted by Congress, said National Australia Bank analyst Tapas Strickland in a note.
The Biden win caused risk assets to gain momentum, with markets banking on more stability, while a divided Congress will still ensure low interest rates for longer and potential fiscal stimulus, said Peregrine Treasury Solutions executive director Bianca Botes in a note.
In morning trade on Monday the Shanghai Composite was up 1.9% and Japan’s Nikkei rose 2.27%.
Tencent, of which Naspers is the largest single shareholder, added 2.69%.
Gold was up 0.22% to $1,961.22/oz while platinum was 0.45% up at $900.54. Brent crude was 2.02% higher at $40.46 a barrel.
The rand was 0.38% firmer at R15.52/$.
Infrastructure development group Raubex is expected to report it swung into a loss in the six months to end-August, as Covid-19 restrictions disrupted its operations.
Source: businesslive.co.za