JSE faces weaker Asian markets on Thursday as markets eye US stimulus
The JSE faces weaker Asian markets on Thursday morning, with focus still on the US, where investors await news on the potential size of a Covid-19 stimulus bill.
The loss of momentum is likely temporary, with US stimulus developments having a quiet day as the Democrats attempt to get a package through the Senate, said Oanda senior market analyst Jeffrey Halley in a note.
“There were some intriguing data releases overnight, and the fact that markets didn’t really react to them strongly emphasises that we all remain on stimulus watch,” he said.
Eurozone inflation data for January came in higher than expected on Wednesday, while private employers in the US added far more staff than expected in the first month of 2021.
In morning trade on Thursday, the Hang Seng was down 1.45% and the Shanghai Composite 1.02%.
Tencent, which gives direction to the JSE through Naspers, had fallen 2.85%.
Gold was 0.52% weaker at $1,823.95/oz, while platinum had lost 1.75% to 1,084.68. Brent crude was 0.1% higher at $58.76 a barrel.
The rand was 0.16% weaker at R14.96/$.
Financial services and technology group Net1 UEPS is due to release its half-year results to end-December later, and should give an update on how demand for loans and transactions is faring amid Covid-19.
Internationally, focus is on the Bank of England’s monetary policy decision later, which should include an outlook on the UK economy, with no major changes to policy expected.
Source: businesslive.co.za
