JSE to contend with weaker Asian markets on Tuesday as lockdowns intensify
The JSE must contend with weaker Asian markets on Tuesday morning, with risk appetite waning as investors consider spiking Covid-19 numbers and lockdown restrictions.
Australia put in place new restrictions for parts of the country overnight, which follows recent moves from Thailand and Malaysia, with concern now centred on the threat of the Delta variant of Covid-19.
This has raised concerns that an economic recovery could be delayed, with SA moving to level 4 lockdown on Monday, which will until July 11. The tighter restrictions have put severe pressure on some local counters, with Tsogo Sun Gaming slumping 9.83% on Monday — its worst day since late December 2020, when SA was grappling with a second wave of Covid-19.
Analysts noted activity on global markets may also be subdued this week ahead of US nonfarm payrolls numbers on Friday. The threat of rising inflation, and the timing of the US Federal Reserve monetary-policy tightening, have been major themes in the market so far in 2021.
In morning trade on Tuesday, the Shanghai Composite was down 0.95% and the Hang Seng 0.77%, while Japan’s Nikkei had given back 0.9%.
Tencent, which can give direction to the local bourse via the Naspers stable, had fallen 0.5%.
Gold was down 0.16% to $1,775.15/oz while platinum had fallen 0.3% to $1,087.83. Brent crude was 0.34% lower at $76.30 a barrel.
The rand was flat at R14.27/$, having weakened 0.88% on Monday.
The local corporate calendar is bare on Tuesday, but in economic news the first-quarter quarterly employment survey is due, and will show the extent to which SA’s labour market continued its recovery after the battering it experienced in 2020. Economists expect it to show only modest formal-sector employment growth.
The Reserve Bank’s quarterly bulletin for the first quarter is also due later, providing an economic overview and additional details of how industries fared.
Source: businesslive.co.za
