JSE could follow recovering Asian markets on Tuesday
The JSE could take its lead from recovering Asian markets on Tuesday, as the threat of an escalation in the conflict between Iran and the US continues to threaten risk sentiment.
The initial sell-off after a US air strike killed an Iranian general seems to have waned, with investors encouraged by the resilience of equities, said AxiTrader chief Asia markets strategist Stephen Innes in a note.
“Equities don’t seem to fear much at the moment, indeed happy new year from the Fed, who continue to offer up a cushy pillow of liquidity to soothe the market’s ills,” said Innes.
Asian markets were firmer on Tuesday morning, with Hong Kong’s Hang Seng up 0.5%, while the Shanghai Composite added 0.36%.
Tencent was up 1.8% in Hong Kong, boding well for its shareholder, Naspers.
Gold was down 0.41% to $1,558.76/oz, while platinum rose 0.58% to $966.58. Brent crude was down 0.76% at $68.06 a barrel.
The rand was steady at R14.17/$.
There is little on the local corporate or economic calendar on Tuesday, however new vehicle sales numbers for December are due later.
Global focus remains on the Middle East, though eurozone retail sales numbers for November, and US manufacturing data for December should get some attention.
Source: businesslive.co.za