JSE could find support on Tuesday from easing trade war concerns
The JSE could benefit on Tuesday morning from positive Asian markets, with concerns about an escalation in US-China tension having eased a little.
US officials have taken aim at China over the Covid-19 outbreak, saying additional tariffs may be imposed amid allegations the pandemic originated in a Chinese lab, and dissatisfaction over that country allegedly covering up the scale of the outbreak.
Markets were writing off the comments as political posturing, said AxiCorp chief global markets strategist Stephen Innes in a note.
“But it remains to be seen if yesterday’s equity market weakness was a bump in the road or the start of something more sinister as the coronavirus blame-game and a looming US presidential election are a toxic recipe for US-China relations,” Innes said.
US markets ended Monday firmer, with the Dow Jones Index rising 0.1%, while the tech-heavy Nasdaq firmed 1.33%l.
A number of Asian markets will be closed this week for public holidays. In morning trade Australia’s All Ordinaries index was up 1.3%.
The rand was 0.44% firmer at R18.47/$.
Gold was down 0.19% at $1698.45/oz, while platinum had risen 0.21% to $765.42. Brent crude was up 1.79% to $28.49 a barrel.
Specialist insurer Indequity is expected to report a fall in headline earnings for its six months to end March, citing a decline in investment income as Covid-19 batters the market.
Source: businesslive.co.za
