JSE set for mixed start on Thursday despite US stock surge
The JSE could get off to a cautious start on Thursday, with Asian stock markets trading mixed despite US equities surging to a fresh record high overnight.
The S&P 500 Index closed 0.8% up on Wednesday, marking its third consecutive day of reaching new record highs.
The rally comes on the back of easing trade tensions between the US and China, with the world’s two largest economies set to resume face-to-face negotiations soon, according to US officials.
As equities rose, government bond yields edged lower.
But while Asian stocks opened higher on Thursday, they gave up some of their gains through the trading session.
Hong Kong’s Hang Seng Index was 0.1% down at the lunch break, while the Shanghai Composite lost 0.3%. Japan’s Nikkei 225 was 0.3% up, but below its earlier highs, and Korea’s Kospi was 0.1% up. Australia’s main benchmark rose 0.5%.
Chinese internet and gaming giant Tencent, which influences the JSE via major shareholder Naspers, was 0.3% lower in Hong Kong.
JSE heavyweight BHP Group was 0.3% down in Australia.
No major company results are expected locally on Thursday. Stats SA is due to publish electricity generation data for May.
Elsewhere, retail sales statistics are due from the EU.
The rand was trading at R14.07/$, R17.71/£ and R15.88/€ on Thursday morning.
“While growth concerns abound globally, the bets that both the European Central Bank and the US Federal Reserve will cut rates, coupled with strong gold prices and ongoing carry trade by yield seekers, continue to keep the rand on a stable footing,” said Bianca Botes, treasury partner at Peregrine Treasury Solutions.
“As the US remains closed today for Independence Day, markets are expected to be fairly quiet and the rand is likely to remain steady.”
The local currency was expected to trade in the R14.00-R14.15 range to the dollar on Thursday, Botes said.
Source: businesslive.co.za
