JSE faces mostly higher Asian markets on Monday
The JSE faces volatility this week as investors wait to see the outcome of the US national election, with most Asian markets tracking slightly higher on Monday morning after some upbeat Chinese data.
China’s Caixin manufacturing purchasing managers index (PMI) outperformed, printing at 53.6 vs 53 expected.
That followed solid official manufacturing and non-manufacturing PMIs released at the weekend, said Oanda senior market analyst Jeffrey Halley in a note.
All eyes are on the US election, however, which will determine the composition of Congress, and therefore the size of any Covid-19 stimulus package.
Much focus is on the race for the Senate, and strong showing by Republicans there could put short-term pressure on markets, as this points to a smaller stimulus package.
In morning trade on Monday the Hang Seng was up 0.88% and Japan’s Nikkei 1.3%, while the Shanghai Composite was flat.
Gold was up 0.14% to $1,881.13/oz while platinum rose 0.79% to $849.79. Brent crude was 3.01% down at $36.72 a barrel.
The rand was little changed at R16.23/$.
Locally, Absa’s PMI for October is due later, and is expected to show an improvement in operating activity.
President Cyril Ramaphosa is expected to address SA this week, and could provide details on what the government’s thinking is regarding containing Covid-19, as a second-wave sweeps much of Europe.
Source: businesslive.co.za
