JSE faces recovering Asian markets on Tuesday
The JSE faces a positive session for Asian markets on Tuesday morning, with riskier assets still showing signs of recovery after last week’s rough sell-off.
The expectation of much higher interest rates in the future and even more difficult economic conditions prompted the sell-off, with investors now having to come to terms with central banks that are willing to risk recession to get on top of inflation.
The modest equity market recovery continues in Asia, thanks to US index futures grinding higher since the opening early on Monday morning in Asia, Oanda senior market analyst Jeffrey Halley said in a note.
The economic calendar is also somewhat light, “leaving markets to continue quietly reversing Friday’s price moves until the US walks in the door, or we get a headline bomb,” he said.
Focus will be on commentary from the US Federal Reserve policymakers later in the week, while SA inflation numbers for May are due on Wednesday.
In morning trade Japan’s Nikkei was up 2.1%, the Hang Seng 1.43% and the Shanghai Composite 0.18%.
Tencent, which influences the JSE via the Naspers stable, had gained 2.21%.
Gold was flat at $1,840.30/oz while platinum had risen 0.47% to $937. Brent crude had 0.88% to $115.19 a barrel.
The rand 0.3% firmer at R15.98/$.
The Reserve Bank is due to release its leading indicator for April later; the indicator gives guidance on the direction of economic conditions.
Source: businesslive.co.za
