JSE faces mixed Asian markets on Friday as focus remains on the US
The JSE faces mixed Asian markets on Friday morning, with market focus still squarely on the US, where there is still no resolution to uncertainty over the race for the presidency.
Democrat candidate Joe Biden has edged close to victory, while incumbent Donald Trump has called for recounts, and is pursuing legal action. The Republicans seem poised to retain the Senate, pointing to tough political battles in Washington over further regulation and Covid-19 stimulus.
Stock investors seem entirely comfortable with policy gridlock, while bonds have come under pressure, said Axi chief global strategist Stephen Innes in a note.
In morning trade the Shanghai Composite was down 0.71% and the Hang Seng 0.16%, while Japan’s Nikkei had added 1%.
Tencent, which influences the JSE via Naspers, had fallen 2.4%.
Gold was down 0.57% to $1,937.12/oz while platinum had gained 0.32% to $886.52/oz. Brent crude was down 1.77% to $40.02 a barrel.
The rand was 0.22% weaker at R15.71/$, but has tracked higher for the past five-consecutive sessions, including three days of gaining more than 1%.
“The rand continues to enjoy strength, driven by the US election and the potential Biden win,” said Peregrine Treasury Solutions executive director Bianca Botes in a note.
“The Federal Reserve is adding to the momentum, indicating that governments and central banks will have to do more to support the economy,” Botes said.
There is little on the local corporate or economic calendar on Friday, with focus instead on developments in the US.
Internationally, focus is on US nonfarm payrolls numbers for October later.
Source: businesslive.co.za