JSE faces weaker Asian markets on Tuesday as energy costs rise
The JSE looks set to contend with weaker Asian markets on Tuesday morning, with rising energy costs fuelling concern over rising price pressure.
Both India and China, the world’s most populous countries, are battling with coal shortages, while tight supplies of natural gas have also become a theme on markets recently.
Coal supply in China has become more tight and on Monday coal futures in China jumped by more than 10% to a new record, after reports that heavy flooding in a major producing province had knocked out a number of coal mines, National Australia Bank analyst Tapas Strickland said in a note.
Some analysts believe this could ultimately affect industrial commodities and general activity.
European markets are unlikely to take solace from the performance of Asia on Tuesday, especially as Europe and the UK have a particularly soft underbelly when it comes to energy prices, Oanda senior market analyst Jeffrey Halley said in a note.
In morning trade the Shanghai Composite was down 1.04%, the Hang Seng 1.02% and Japan’s Nikkei 0.95%.
Tencent, whose shares influence the direction of the Naspers stable, had fallen 1.46%.
Gold was up 0.23% to $1,757.30/oz while platinum had gained 0.29% to $1,009.45. Brent crude was little changed at $83.62 a barrel.
The rand was flat at R15.06/$.
The corporate calendar is bare on Tuesday, while mining and manufacturing figures for August due out later should give some additional insights into SA’s third-quarter economic performance.
Source: businesslive.co.za
