JSE bounces back as US-Iran fears recede

The JSE was a little firmer on Tuesday afternoon, tracking positive Asian and European markets that were bouncing back after a recent spike in risk following a US strike that killed a senior Iranian military commander.

Though investors remain uncertain as to how Iran may retaliate to the US attack that killed Iranian general Qassem Soleimani, equities seemed to be faring, with analysts saying that there appeared to be a softening of Iranian language on the issue.

Asian markets rebounded on Tuesday, as did their European counterparts.

Earlier, the Shangai Composite rose 0.69%, Hong Kong’s Hang Seng 0.34% and Japan’s Nikkei 225 1.60%.

“Stock markets are enjoying a bit of a bounce on Tuesday, a rebound that started during US trade on Monday and has flowed across Asia and Europe this morning,” said Oanda senior market analyst Craig Erlam.

“Oil prices have settled a little as traders regain a little composure. Still, Brent is trading at a premium as a result of the assassination and that could continue for a short while,” said Erlam.

At 12.45, The JSE all share had gained 0.19% to 57,302.2 points and the top 40 0.19%. Resources fell 0.91%, gold miners 3.14% and platinum index 1.31%.

Gold was flat at $1,565.56/oz, while platinum rose 0.70% to $967.59. Brent crude was down 0.17% at $68.46 a barrel.

There is little on the local corporate or economic calendar on Tuesday; however, new-vehicle sales numbers for December are due later.

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Source: businesslive.co.za