JSE could join rebound in global markets
The JSE could move higher on Thursday, joining a broad rebound in global markets amid hopes of a ceasefire in the Russia-Ukraine standoff.
Japan’s Nikkei 225 surged almost 4% to lead the Asian markets, after a similarly impressive session on Wall Street, suggesting that investors think the recent selling of stocks could be overdone — at least in the short term.
The Russia-Ukraine crisis has had a disparate effect on SA assets, boosting commodity prices and mining shares on one hand while raising concerns on the outlook for inflation, as reflected in the recent spike in government bond yields before they eased off on Wednesday
Brent crude was up just more than 2% to $113 a barrel in early trade, having dropped substantially from 14-year highs of about $130 on Wednesday. The precipitous drop came after major oil producer United Arab Emirates said it would lobby its allies to boost output.
As a result, oil-related stocks such as JSE-listed Sasol could come off the boil. Platinum and gold shares, which have benefited handsomely from rising metal prices, could take a breather.
The rand eased slightly in early trade, after rallying as much as nearly 2% in the previous session, in a move that reflected a risk-on environment. The currency was off 0.34% to R15.04/$, near its highest level in three weeks.
With global risk appetite gaining traction, safe-haven plays took a bit of a knock, leaving the gold price down 0.69% at $1,980.830z, backing away from its 19-month high.
Source: businesslive.co.za
