JSE faces upbeat Asian markets on Monday amid global recovery hopes
The JSE looks set to open to mostly positive Asian markets on Monday morning, but a lower Tencent, amid optimism over the global economic recovery.
In the US, a bipartisan group of senators finalised the text of a $1-trillion infrastructure bill at the weekend that is expected to be passed in coming days after an amendment process.
Markets have been watching for the huge fiscal stimulus to help solidify the recovery of the world’s largest economy. It comes as the US Federal Reserve starts contemplating easing back on its monetary policy stimulus amid rising inflation and an improving labour market.
China’s regulatory crackdown is also being watched after making waves in the market last week, but authorities have since met investment banks to soothe fears that the crackdown will escalate.
In morning trade the Shanghai composite was up 1.49% and Japan’s Nikkei 1.85%, while the Hang Seng added 0.99%.
Tencent, which influences the JSE via the Naspers stable, gave back 2.38%.
Gold was 0.11% weaker $1,811.81/oz while platinum rose 0.25% to $1,057.14. Brent crude was 0.82% lower at $74.53 a barrel.
The rand was 0.28% weaker at R14.61/$.
There is little on the local corporate calendar on Monday, while in economic news the Absa purchasing managers’ index for July, a gauge of the health of the manufacturing sector, is expected to show a drop from 57.4 points in June.
The fall is expected to reflect ongoing Covid-19 restrictions that have hit SA’s leisure and hospitality sectors in particular, while the month also saw the outbreak of violence and looting in KwaZulu-Natal and Gauteng.
New-vehicle sales numbers for July are also due on Monday.
Source: businesslive.co.za
