JSE could get boost from global stock rebound on Wednesday
The JSE could benefit from a rise in risk sentiment on Wednesday, after US Federal Reserve chair Jerome Powell said rate cuts were on the cards.
Powell said the Fed was monitoring the effects of the US trade war with major economies and would respond appropriately to prop up the economy, Bloomberg reported.
The S&P 500 rallied 2.1% overnight. On Wednesday, Japan’s Nikkei 225 surged 1.9%, while the Shanghai Composite and Hong Kong’s Hang Seng Index both rose 0.8%. Australia’s main benchmark gained 0.5%.
Chinese internet and gaming giant Tencent surged 1.4% in Hong Kong, suggesting a good start for major shareholder and JSE-titan Naspers.
In Australia, JSE-listed BHP Group was up 0.4%.
On Tuesday, the JSE shook off an unexpectedly sharp decline in the economy in the first quarter to post small gains for the day.
No major financial results are expected locally on Wednesday, though Sanlam is expected to publish a four-month trading update as it hosts its annual general meeting.
Manufacturing and business confidence data is expected later in the day, and the EU will release producer price and retail sales numbers.
The rand, which was battered by SA’s weak economic growth numbers and comments that the ruling party wants to expand the Reserve Bank’s mandate, was slightly firmer on Wednesday morning.
It was at R14.62/$, R18.59/£, and R16.47/€.
Source: businesslive.co.za
