JSE likely to be mixed on Monday amid patchy Asian markets
The JSE is likely to have a mixed session on Monday, given the patchy performance in Asia while the US markets are closed for a public holiday.
Hong Hong’s Hang Seng was off 0.45% but China’s Shanghai Composite edged up 0.16%.
In SA, the rising Covid cases continue to be the main focal point for markets as they have the potential to undermine business and consumer confidence.
However, the so-called SA Inc stocks, those that make the bulk of their income from SA, have been resilient since SA moved to level 4 of the risk-adjusted strategy a week ago. The resilience suggests that the market is taking a wait-and-see approach.
The rand was relatively steady at R14.24/$, after staging a recovery on Friday after the monthly US jobs report, which reinforced the recovery of the US economy, but was not strong enough to warrant the withdrawal of monetary support.
The local currency, which is a proxy of sentiment towards emerging markets because of its highly tradable status, traded as low as R14.48/$ before US jobs report on Friday.
Brent crude was up 0.60% to $76 a barrel, near its highest level since April 2019, as Opec+ prepared to meet on Monday to decide on production. Higher oil prices could lead to higher fuel prices and inflation.
Other commodities were also higher, with platinum gaining 0.81% to $1,098.73 per ounce and palladium up 0.31% to 2,792 per ounce.
Source: businesslive.co.za
