JSE could feel fallout from US-China tension on Monday
The JSE could feel the strain from a resurgence of concern regarding the US-China trade war on Monday, with US President Donald Trump saying at the weekend that sanctions may be imposed on China due to the Covid-19 outbreak.
US officials suspect that the pandemic may have originated in a Chinese lab, while they are also accusing China of covering up the scale of the outbreak.
This has brought US-China politics back to the fore, putting pressure on some Asian markets on Monday, said National Australia Bank analyst Ray Attrill in note.
The JSE was also closed on Friday, when most global markets were feeling some strain, partially due to disappointing corporate updates from US tech giants.
In morning trade on Monday the Hang Seng was down 3.8%, while markets in China were closed for a public holiday.
Tencent, which influences the JSE via Naspers, had given back 3.5%.
The rand was down 0.21% to R18.87 a dollar, having weakened since Thursday, when it had reached an intraday best of R18 a dollar, according to Infront data. On May 1, SA bonds fell out of the World Government Bond Index.
Gold was flat at $1,697.82 an ounce while platinum had risen 0.95% to $762.40 an ounce. Brent crude was 1.47% lower at $26.20 a barrel.
Locally, Absa’s purchasing managers’ index for April is due out later, and is expected to show a contraction, due to SA being in lockdown.
Redefine Properties is due to release its results for the half year to end-February later, having said recently it would not be declaring a distribution. Numerous property groups have opted to hold on to cash as they battle uncertainty from the Covid-19 pandemic.
Source: businesslive.co.za
