JSE’s recovery could continue on Tuesday
The JSE could take its lead from recovering Asian markets on Tuesday morning, as hopes of global central bank stimulus helps equities recover from the battering they have taken from the coronavirus.
The Dow surged 5.09% on Tuesday, boosted by hopes that central banks co-ordinate a response to the coronavirus outbreak.
An impending round of fresh central bank easing is not going to make the viral outbreak go away, said National Australia Bank analyst Ray Attrill in a note.
“Indeed the more draconian and successful efforts at containing the spread of the virus are worldwide, the bigger will be the negative economic consequences. But this thought is playing second fiddle so far this week to the prospect of yet more central bank largesse,” he said.
The European Central Bank said on Monday it stood ready to respond to the outbreak. This follows the unusual step on Friday taken by the US Federal Reserve saying it too stood ready to act.
In morning trade on Tuesday the Shanghai Composite was up 1.36% while the Hang Seng had firmed 0.78%.
Tencent, which influences the JSE via Naspers, was up 2.9%.
Gold was up 0.66% to $1,559.64/oz, while platinum had risen 1.32% to $869.25. Brent crude was 0.23% lower at $52.94 a barrel.
Amid the focus on the coronavirus, SA’s GDP numbers for the fourth quarter of 2019 are due at 11.30am, and may show that the country entered a technical recession in the second half of the year.
Royal Bafokeng Platinum is expected to report later higher headline earnings per share rose as much as 120% in its year to end-December.
Source: businesslive.co.za