JSE could follow firmer Chinese markets as stimulus talks fuel sentiment

The JSE could start the week on a positive note on Monday as Chinese equities firmed as focus remains on US stimulus.

On Sunday, the White House asked the US Congress to pass a limited Covid-19 relief package as the two sides are yet to reach an agreement on broader fiscal stimulus measures.

“Financial markets continue to rotate into risk-seeking positioning as hopes persist that a US fiscal stimulus package will appear,” Oanda senior market analyst Jeffrey Halley said.

“The wave of optimism [was] boosted by the third position change in a week by the White House on the package,” Halley said.

Earlier, the Shanghai Composite was up 2.25% and Hong Kong’s Hang Seng 2.21% while Japan’s Nikkei 225 was down 0.27%.

At 7.59am, the rand had weakened 0.13% to R16.4779/$, 0.24% to R21.4953/£ while it was  flat at R19.4762/€.

Locally, investors will be watching manufacturing production data for August due later in the day.

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Source: businesslive.co.za