JSE could benefit from US election developments on Thursday

The JSE could take its lead from firmer Asian markets on Thursday morning, with sentiment boosted by a response by US authorities to the coronavirus, as well as developments in that country’s 2020 electoral process.

The US Congress has approved a $8.3bn emergency coronavirus bill that will fast-track research & development for treatments and a vaccine.

Markets also welcomed a victory by Democratic candidate Joe Biden during primary elections, having taken the lead over socialist rival Bernie Sanders.

Biden is more market friendly than Sanders and is less likely to raise taxes, said BK Management MD Kathy Lien in a note.

The Dow jumped 4.53% on Wednesday, while Asian markets were firmer on Thursday morning, with the Shanghai Composite up 1.4% and the Hang Seng 1.17%.

Tencent was up 1.7%.

The rand was 0.21% weaker at R15.29/$, but has firmed 2.35% over the past five days.

Gold was up 0.18% to $1,639.56/oz while platinum had fallen 0.24% to $869.45. Brent crude was 0.5% higher at $51.81 a barrel.