JSE faces subdued Asian markets on Tuesday as investors eye US inflation

The JSE faces subdued, and generally weaker, Asian markets on Tuesday morning, with all eyes on US economic data.

There are concerns that the US economic rebound is pushing up prices and will force the US Federal Reserve to act, with inflation data for the world’s largest economy due on Thursday.

US markets were mixed overnight, with the Dow Jones index a little lower, the S&P 500 flat, while the Nasdaq rose almost 0.5%.

“Thursday’s data could mean this week seems interminably long if the overnight price action is anything to go by,” said Oanda senior market analyst Jeffrey Halley in a note.

Asian markets were mixed in morning trade on Tuesday, with the Shanghai Composite down 0.51% and the Hang Seng 0.3%, while Japan’s Nikkei was flat.

Tencent, which gives direction to the JSE via the Naspers stable, had gained 0.17%.

Gold was 0.11% weaker at $1,896.70/oz, while platinum had fallen 0.27% to $1,169.80. Brent crude was 0.8% weaker at $70.88 a barrel.

The rand was 0.28% weaker at R13.53/$.

Locally, SA’s first-quarter GDP numbers are due at 11.30am, and are expected to show growth moderated relative to the last three months of 2020. The consensus is for about 3% quarter-on-quarter growth, from 6.3% in the preceding three months.

[email protected]

Source: businesslive.co.za