JSE to contend with flat or higher Asian markets on Wednesday
The JSE all share faces either flat or higher Asian markets on Wednesday morning, with the dollar coming under some pressure on Tuesday after a number of US Federal Reserve officials indicated loose monetary policy conditions could continue for some time.
The most prominent dovish voice came from typically hawkish Esther George, despite some higher inflation risk, Axi chief global markets strategist Stephen Innes said in a note.
George also noted that the outlook is for policy to remain accommodative for some time, Innes said, adding that Fed chair Jerome Powell is due to give a speech on Thursday that could shift market expectations.
In the meantime, the two-pronged monetary and fiscal stimulus efforts, and optimism over the vaccine rollout support the market, he said
In morning trade the Shanghai composite and Hang Seng were flat, while Japan’s Nikkei added 0.82%.
Gold was up 0.27% to $1,859.30/oz, while platinum had risen 0.66% to $1,077.43. Brent crude was 1.02% higher at $57.30 a barrel.
The rand was flat at R15.19/$, having risen almost 2% against the dollar on Tuesday.
There is little on the local corporate calendar on Wednesday, while retail sales numbers for November are due later, and are expected to reflect a slowdown in Black Friday sales amid pressure on consumers.
Source: businesslive.co.za