JSE likely to cheer US-China trade war ceasefire

The rand, Asian markets and oil cheered the announcement of a truce in the trade war between the US and China following talks at the weekend’s Group of 20 (G20) meeting in Buenos Aires.

Brent crude oil rebounded 5.6% to $62.39 a barrel and West Texas Intermediate (WTI) was up 5.9% to $53.63 a barrel on Monday morning, indicating a good day for Sasol and other oil-related shares.

In Sydney, BHP was up 3.78% to A$31.85 ahead of the JSE’s opening.

Fortunately for South African motorists, Monday’s oil rally will not translate into higher prices until at least January. On Saturday, the government committee that sets fuel prices, which take effect on the first Wednesday of every month, announced petrol prices will drop R1.84/l on December 5, taking the price of 93 octane in Gauteng to R15.01/l.

The wholesale price of diesel will drop R1.45 to R14.67/l.