JSE could benefit from easing US-China tensions on Monday
The JSE looks set to start to a little optimism on global markets on Monday morning, though risk sentiment remains fragile as the war in Ukraine continues and investors consider the chances of aggressive global central bank policy moves.
News out of China was mixed at the weekend, with authorities in Shanghai extending lockdown conditions, though there were reports regulators are set to step up efforts to ensure that Chinese companies can remain listed in the US, Reuters reported.
China has proposed revising rules aimed at protecting state secrets, a bone of contention with Washington, which wants the ability to access documents when auditing Chinese firms.
General focus remains on the Ukraine, where hopes last week of a ceasefire have dissipated, while investors are watching for any move by the West to step up sanctions, or by Russia to restrict its flow of gas to Europe.
US economic data last week was strong, with US nonfarm payrolls for March missing expectations, but still pointing to a tight labour market. Attention this week will be on the release of minutes from the US Federal Reserve’s most recent meeting, on Wednesday.
In morning trade on Monday the hang seng was up 1.25%, and Australia’s all ordinaries index 0.54%, while Japan’s nikkei was flat. Exchanges in mainland China are closed for the Qingming festival.
Tencent, which influences the JSE via the Naspers stable, rose 1.74%.
Gold was flat at $1,922.43/oz while platinum was little changed at $984.67.
The rand was flat at R14.64/$.
SA’s local corporate and economic calendars are bare on Monday, with the week also light in terms of releases, though business confidence data for March is due on Friday.
With Reuters
Source: businesslive.co.za