JSE could find support from higher Asian markets on Tuesday
Firmer Asian markets bodes well for the JSE on Tuesday morning, though gold miners could feel the pinch from an overnight drop in the price of the precious metal.
Gold miners had lifted 4.7% on Monday, their best performance in almost two months, amid concerns that US-China trade talks scheduled for later this week may not result in a deal.
The precious metal, however, fell back below $1,500/oz overnight.
The Chinese commerce ministry said on Tuesday it was ready for a partial deal on points already agreed upon, such as purchase of US agricultural products.
However, the market remains sceptical, as China has said it would not relent on industrial policy and state subsidies, which changes to intellectual property laws remain off the table, said BK Asset Management MD for foreign exchange strategy Kathy Lien in a note.
Asian markets were higher on Tuesday, however, with the Shanghai Composite up 0.84% and the Hong Kong Hang Sang 0.67% as of 6.15am SA time.
Tencent, which influences the JSE via Naspers and Prosus, rose 0.87%.
Diversified miner BHP gained 0.83% on the Australian Securities Exchange.
The rand was 0.21% firmer at R15.144/$. Gold slipped 0.17% to $1,490/oz while platinum was up 0.33% at $879.80. Brent crude was up 0.5% to $58.66 a barrel.
There is little on the local economic or corporate calendar on Tuesday, with focus remaining on US-China trade war developments.
US producer price inflation data later is the day’s primary data release.
Source: businesslive.co.za
