JSE could follow positive Asian markets on Thursday
The JSE could track gains, albeit marginal ones, in Asian markets on Thursday morning amid hopes the US and China will clinch a trade deal, even as poor US data boosts the chances of future interest rate cuts.
The dicey outlook for a US-China trade deal coupled with the weaker US data has seen a rise in expectations of a US Federal Reserve rate cut, said AxiTrader chief Asian markets strategist Stephen Innes in a note.
The rand is finding support from the prospect of rate cuts, said Peregrine Treasury Solutions corporate treasury manager Bianca Botes in a note.
Asian markets were positive on Thursday morning, with the Shanghai Composite and Hang Seng up 0.3%. Gold and platinum were flat at $1,475.58/oz and $899.14 respectively.
Brent crude was 0.18% lower at $62.88 a barrel, having jumped more than 4% on Wednesday.
The rand was little changed at R14.59/$.
There is little on the local corporate or economic calendar on Thursday, though current account data for the third quarter is due.
International focus is on eurozone data, while US jobs data will also be watched.
“With an array of data, we can expect the rand to show some volatility. However, the broader range of R14.50/$ to R14.85/$ remains intact for the time being,” said Botes.
Source: businesslive.co.za