JSE’s recovery could continue on Wednesday after US markets surge

“Everyone is looking for a canary in the coal mine,” said AxiCorp chief Asia markets strategist Stephen Innes in a note. “Still, ultimately for risks sentiment to turn back on bright, investors need conclusive evidence of coronavirus infection curves flattening, bringing an end to lockdowns in sight,” he said.

Asian markets extended their gains on Wednesday morning, with Japan’s Nikkei leading the gains in adding 5.58%. Hong Kong’s Hang Seng was up 2.12% while the Shanghai Composite had risen 1.57%.

Tencent, of which Naspers is a major shareholder, added 2.68%.

Gold was down 0.65% to $1,612/oz while platinum had added 2.95% to $727.44. Brent crude had gained 0.68% to $27.88 a barrel.

There is little on the local corporate or economic calendar on Wednesday, and focus is instead on SA’s looming 21-day lockdown on Friday morning. Numerous JSE-listed counters have issued coronavirus updates, with some delaying or even cancelling recent dividend announcements in order to shore up their balance sheets.

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Source: businesslive.co.za