JSE’s positive run in peril as global growth concerns weigh
The JSE’s three-session winning streak is under threat on Thursday morning, with Asian markets mixed as investors consider geopolitical tension and the continued economic trauma stemming from Covid-19.
Global data on Wednesday showed eurozone inflation reached a record high in January of 5.1% year on year, with the European Central Bank set to announce its latest monetary policy decision later on Thursday.
US jobs data also missed expectations on Wednesday, although corporate earnings were mostly positive, with Facebook a notable exception, which plunged 22% in after hours trade after its report for the fourth quarter.
Alphabet, the owner of Google, fared better.
Strong US earnings results and guidance continue to support the equity market, helping easing concerns over companies’ ability to perform in the current environment, said National Australia Bank currency strategist Rodrigo Catril in a note. So far roughly 80% of S&P 500 companies have met or beat estimates.
Investor attention is also on Ukraine, with the US announcing it was deploying more troops to Eastern Europe amid tension with Russia.
In morning trade Japan’s Nikkei was down 1% and the Australian All Ordinaries Index 0.4%, while South Korea’s Kospi had added 2.2%.
Gold was flat at $1,805.66/oz while platinum was 0.23% higher at $1,037. Brent crude was flat at $89.22 a barrel, 54% higher than it was a year ago.
The rand was 0.36% weaker at R15.37/$, having weakened 2.8% over the past twelve months.
Transport and logistics group OneLogix is expected to report its results for the six months to end-November later, with headline earnings set for a sharp decline, partly attributable to a freak hailstorm in September which caused considerable damage to passenger vehicles stored at one of the group’s facilities.
Source: businesslive.co.za