JSE could take lead from weaker Asian markets on Tuesday

The JSE could follow weaker Asian markets on Tuesday morning, with sentiment taking a knock from weaker-than-expected Chinese economic data.

A Chinese purchasing managers’ index fell more than expected in April, pointing to a lack of demand as the pandemic hits economic activity in the world’s second-largest economy.

In morning trade on Tuesday Hong Kong’s Hang Seng was down 1.78% and the Shanghai Composite 0.6%.

Tencent, which influences the JSE via Naspers, which is its largest single shareholder, fell 1.6%.

Gold was up 0.16% to $1,700.50/oz, while platinum was up 1.27% to $768.19. Brent crude was down 1.69% to $29.70 a barrel.

The rand was 0.2% weaker at R18.44/$.

The rand continues to drift with little direction as markets await a new catalyst, while the larger theme of the virus pandemic remains the focal point, said Perergrine Treasury Solutions executive director Bianca Botes in a note.

Retailer Pick n Pay is due to release its full-year results later, and should provide details on its outlook as Covid-19 keeps customers in their homes.

[email protected]