JSE may follow weaker global markets on Thursday
The JSE could take its lead from weaker Asian markets on Thursday morning, as investors continue to contemplate the dire economic implications of the Covid-19 pandemic.
Economic data is confirming that the virus will have a severe toll on the global economy, with data on Wednesday showing US retail sales posting their largest ever decline in March, when they fell 8.7%. The only positive takeout was that panic buying led to a 25% increase in food sales, said National Australia Bank analyst Gavin Friend in a note.
The dismal data comes after the IMF warned earlier this week that the world is set for its worst depression since the 1930s in 2020. So far this week, both the Reserve Bank and Moody’s Investors Service have slashed their growth forecasts for SA.
In morning trade on Thursday Japan’s Nikkei fell 1.47% while the Hang Seng gave back 0.79%.
Tencent, of which Naspers is the largest single shareholder, was up 1.42%.
Gold was flat at $1,715.33/oz while platinum fell 0.16% to $777.95. Brent crude was 0.18% higher at $28.01 a barrel.
The rand was little changed at R18.67/$, having lost 2% of its value against the dollar on Wednesday.
US jobs data later will be closely watched, while there is little on the local corporate or economic calendar.
Markets are also closely watching for details as countries signal their intention to start easing Covid-19 restrictions, with some extending their lockdowns, even as they start putting plans in place for a return to normality.
Source: businesslive.co.za
