JSE looks set for positive session on Tuesday amid global market recovery
The JSE could be in store for a positive session on Tuesday morning, with global markets staging a recovery on Monday from a steep sell-off on Friday.
Concerns over rising inflation, aggressive central bank policy, and weak US earnings reports put severe pressure on global markets on Friday, when the Nasdaq slumped more than 4%.
Markets recovered a bit on Monday, however, when the JSE was closed for a public holiday, and Asian markets were faring well on Tuesday morning.
In early trade the Shanghai Composite was up 2.41% and the Hang Seng 0.3%. Tencent, which influences the JSE via Naspers, gained 1.11%.
Gold was flat at $1,862.43/oz, while platinum rose 0.27% to $938. Brent crude was 0.38% weaker at $106.97 a barrel.
The rand was flat at R16.10/$, slipping almost 1.8% on Monday, with market focus this week on the US Federal Reserve, which may opt to raise interest rates by 50 basis points on Wednesday.
With a 50 basis point hike to the target range all but certain, the press conference will provide important colour around the prospects of a soft landing, the neutral fed funds rate and balance sheet normalisation, said SPI Asset Management managing partner Stephen Innes in a note. The question will now turn to whether there is a chance of a 75 basis point hike at coming meetings, he said.
Source: businesslive.co.za