JSE faces higher Asian markets on Wednesday after progress for US infrastructure bill
The JSE looks set to open to positive Asian markets on Wednesday morning, with US markets at record highs overnight, as the US Senate signed off on a huge $1-trillion spending bill.
The bill includes new spending in areas such as infrastructure and energy, though the Democrat leadership still wants it to be put to the House of Representatives alongside another $3.5-trillion social spending package.
“This is unlikely to be a quick process, and will also likely run into debt ceiling negotiations,” said National Australia Bank analyst Ray Attrill in a note.
Overall, the mixed picture in Asia is very much the same as on Tuesday with regional markets content to tweak positioning ahead of the US inflation data, which will dictate equity directions into the end of the week, Oanda senior market analyst Jeffrey Halley said in a note. US inflation numbers for July are due later.
In morning trade the Shanghai Composite was up 0.27%, the Hang Seng 0.21% and Japan’s Nikkei 0.49%.
Tencent, which influences the direction of the JSE through the Naspers stable, had fallen 0.86%.
Gold was up 0.33% to $1,734.71/oz while platinum had risen 0.87% to $1,005.80. Brent crude was 0.51% lower at $70.48 a barrel.
The rand was 0.13% weaker at R14.80/$.
Locally, the SA Chamber of Commerce and Industry (Sacci) is due to release its business confidence survey for June and July, which could reflect the effects of violent riots in the latter month.
Banking group Nedbank is due to release its results for the six months to end-June later, and expects headline earnings per share (HEPS) to have more than doubled, as it bounces back from a tough first half of 2020. The group has said writedowns have fallen significantly.
Source: businesslive.co.za
