JSE may continue to benefit from improved sentiment on Tuesday
The JSE may start off February on a positive note on Tuesday, having eked out gains in January in what was a turbulent month.
Global markets are facing the prospect of monetary policy becoming rapidly less accommodative in 2022, with high energy costs and supply-chain disruptions persisting.
The local bourse added 0.81% in the month, with banks faring particularly well and adding 3.77%. US markets had their worst month since early 2022, with the tech-heavy Nasdaq under pressure, and falling almost 9% in the month.
US markets rallied at month end overnight, when the Nasdaq gained more than 3%, while morning trade in Asia is being subdued by the Chinese new year holiday.
In early trade, Japan’s Nikkei was marginally up, while Australia’s All Ordinaries index had gained 0.74%.
Local news is also positive on Tuesday with Covid-19 restrictions being eased further, including those without symptoms no longer having to isolate, even if they test positive.
In morning trade gold was flat at $1,796.62/oz, while platinum was little changed at $1,020.50. Brent crude was 0.25% higher at $82.50 a barrel. Brent crude has still gained about 15% in the year to date.
The rand was 0.2% weaker at R15.40/$, having firmed more than 3% against the dollar so far in 2022.
The Absa purchasing managers’ index for January is due later, having lost some momentum in December, but remaining in expansionary territory.
Source: businesslive.co.za
