JSE may get bump form US stimulus hopes on Thursday

The JSE may take its lead from firmer Asian and US markets on Thursday, though Chinese markets are closed for a public holiday, while Japan’s Nikkei has experienced technical issues.

Indications of compromise between US politicians over a new stimulus package lifted Wall Street on Wednesday.

No agreement was reached despite more than 90 minutes of discussion, with hopes for a deal pared somewhat but not extinguished, said National Australia Bank analyst Tapas Strickland in a note.

In morning trade, Australia’s All Ordinaries index was up 1.61%, while the Shanghai Composite and Hang Seng are closed for China’s National Day holiday.

The rand was 0.11% firmer at R16.68/$, having recently benefited from pressure on the dollar due to stimulus hopes, said Peregrine Treasury Solutions executive director Bianca Botes in a note.

Gold was 0.41% higher at $1,893.10/oz, while platinum was 1.8% up at $90.3.49. Brent crude was 0.52% higher at $42.34 a barrel.

There is little on the local corporate calendar on Thursday, while manufacturing activity data for August is due later.

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Source: businesslive.co.za