JSE faces firmer Asian markets on Wednesday, as rand holds under R15/$
The JSE may benefit from higher Asian markets on Wednesday morning, with the rand extending its gains after SA’s third-quarter GDP numbers, trading at an almost 10-month high against the dollar.
The local currency rallied on Tuesday after SA’s third-quarter GDP numbers beat expectations, increasing at a seasonally adjusted and annualised rate of 66.1% as lockdown restrictions were eased.
The local currency pushed past R15/$ level on Tuesday, and in morning trade on Wednesday it had firmed 0.42% to R14.92/$.
Sentiment has been bolstered by signs US legislators are closing in on a stimulus deal, with reports suggesting the White House is encouraging Republican senators to include a $600 stimulus cheque for households in the deal.
“With the markets starting to exhibit some year-end fatigue, any stimulus holiday stocking stuffer will come at a most welcome time and ensure that well-subscribed equity markets will cross the year-end finishing line on a positive note,” Axi chief global markets strategist Stephen Innes said in a note.
“Indeed another week, another record print on US stocks,” he said.
In morning trade the Hang Seng was up 1.26% and Japan’s Nikkei 1.17%.
Tencent, which influences the JSE via Naspers, had risen 0.94%.
Gold was down 0.7% to $1,857/oz while platinum added 0.34% to $1,025.98. Brent crude was 0.41% lower to $48.64 a barrel.
Locally, the corporate calendar is somewhat bare on Wednesday, though the day is busier in terms of economic releases.
Inflation numbers for November are due later, with most economists expecting a small deceleration from October’s 3.2% year-on-year increase.
October retail sales figures are also due, and further improvement is expected, having declined 2.7% year on year in September.
Source: businesslive.co.za
