JSE faces subdued Asian markets on Tuesday as focus remains on US
The JSE all share faces subdued Asian markets on Tuesday, with focus still on US politics, notably the prospects of a second fiscal stimulus agreement between political parties.
Tuesday marks a deadline set by House speaker Nancy Pelosi for a pre-election stimulus deal, with no sign of a breakthrough yet.
“President Donald Trump is pushing for a deal and the White House is cautiously optimistic. But the sell-off in stocks is a sign that investors don’t believe that there’s enough political support in Congress to support a new package,” said BK Asset Management MD of foreign exchange strategy Kathy Lien in a note.
In morning trade Japan’s Nikkei was down 0.4% and the Shanghai Composite 0.13%.
Tencent, which influences the JSE via Naspers, had lost 0.18%.
Gold was down 0.17% to $1,900.71/oz, while platinum had fallen 0.42% to $856.46. Brent crude was 0.4% weaker at $42.27 a barrel.
The rand was 0.16% weaker at R16.54/$.
Pick n Pay is due to release its results for the six months to end-August later on Tuesday. The group said in a trading update it expects headline earnings per share to fall between 50% and 60% for the period.
The SA Reserve Bank’s composite leading business cycle indicator for August is due later. The leading indicator shows a projection of SA’s economic growth cycle for the next six to 12 months.
Source: businesslive.co.za
