The JSE, which resumed its downward trend on Thursday, looks set to be helped by Asian markets which had an uptick on Friday morning, while investors are considering high US inflation, what the affect of interest rate hikes will be and what is required to tame it.
Investors’ sentiment has also been affected by economic outlooks in recent days as cryptocurrencies and tech stocks continue to take a hit, the war in Ukraine and Covid-19 lockdowns in China continue.
The Shanghai Composite ticked up 0.63% in early trade on Friday, the Hang Seng was up 1.95% and Japan’s Nikkei 2.42%. Tencent, of which the Naspers group is the single biggest shareholder, rose 2.44% in Hong Kong.
In the US, the S&P 500 was down 0.1% on Thursday despite concerns about instability in crypto markets, while the euro continues to suffer after Russian gas flows via Ukraine fell by a quarter as Kyiv halted a major transit route. Russia’s gas supply is driving a wedge between European countries as some, but not all, have turned off the spigot amid sanctions against Russia.
The Dow Jones fell for the sixth straight day in a row on Thursday as it slid 0.33% as traders try to grapple with the volatile market.
US Federal Reserve chair Jerome Powell is set to stay on after he was given a second four-year term on Thursday following a vote from the Senate.
The rand weakened more than 1% on Thursday to R16.2678/$, but was up 0.48% on Friday morning to R15.9939/$.
Gold was up 0.25% to $1,826.25/oz, while platinum climbed 1.22% to $944, and Brent crude rose 2.02% to $109.28.
The SA Chamber of Commerce and Industry (Sacci) will release its business confidence index for April on Friday, which is forecasted to go down to 94.8.
MTN Group, which has been helped by rapid growth in demand for communication services, fintech and fibre, will report on its first quarter affected by trouble with SIM connections in Nigeria, one of its biggest markets.
SA’s largest steel producer ArcelorMittal SA, which has recently been affected by strikes, is set to release its results for the three months to end-March while precious metals miner AngloGold Ashanti will do the same as it expects to produce 13.3% more gold in 2022.
Meanwhile, technology company Altron will release its annual results and is expecting full-year earnings will plunge by as much as three-quarters on impairments and the exclusion of Bytes UK’s results.
On the properties side of the market, Balwin Properties, Spear Reit, Oasis Crescent and Spear Reit are releasing annual results on Friday.