JSE faces higher Asian markets as market eyes US policy change
The JSE may benefit from higher Asian markets on Tuesday morning, amid optimism that the incoming administration of US president-elect Joe Biden will move comprehensively to support the world’s largest economy through Covid-19.
The Financial Times reports that treasury secretary nominee Janet Yellen, the Federal Reserve’s former head, will state that the US risks a more prolonged recession and long-term scarring if it did not inject more government spending into the economy, said Oanda senior market analyst Jeffrey Halley in a note.
“With US markets mostly closed for a public holiday, Asian markets appear to have seized on Yellen’s remarks as further vindication for Biden’s $1.9-trillion (R28.7-trillion) stimulus package,” Halley said.
In morning trade the Hang Seng was up 3.02% and Japan’s Nikkei 1.48%.
Tencent, which influences the JSE through the Naspers stable, had gained 1.22%.
Gold was little changed at $1,838.02/oz, while platinum had risen 1.25% to $1,096.02. Brent crude was 0.44% higher at $54.96 a barrel.
The rand was 0.42% firmer at R15.10/$.
There is little on the local corporate calendar on Tuesday, while mining data for November is due later, with the pace of contraction in output expected to have slowed as the sector continued its recovery from lockdown restrictions earlier in the year.
Source: businesslive.co.za