JSE may get lift from easing US-China trade tension on Friday
The JSE could benefit from an easing of concerns about US-China trade tensions on Friday, with focus also on US jobs data later, which is expected to be dismal.
US and China officials may engage next week over a partial trade deal signed in January, with markets taking some strain recently from concerns the US is unhappy with China’s implementation of the deal
US officials have also expressed dissatisfaction over China allegedly covering up the scale of the Covid-19 outbreak, and suggested the pandemic may have originated in a Chinese lab.
“The call will be the first since the phase-one deal was signed in January and provides some comfort to markets which had grown concerned about renewed tensions over trade as well as US President Donald Trump’s doubts over the origin of Covid-19,” said National Australia Bank analyst Tapas Strickland in a note.
In morning trade Asian markets were higher, with Japan’s Nikkei up 1.94% and the Hang Seng 0.99%. Tencent, which influences the JSE via Naspers, had gained 2.36%.
Gold was flat at $1,713.82/oz while platinum had added 0.26% to $725. Brent crude had added 1.46% to $29.85 a barrel.
The rand was 0.4% firmer at R18.54/$.
Markets are watching for US nonfarm payrolls data for April, which is expected to be the worst on record. Twenty-one million jobs are expected to have been lost in the world’s largest economy last month, which would result in the unemployment rate surging to 16%.
Source: businesslive.co.za
