Rand and tech stocks under pressure as US sticks with Fed chair
The JSE looks set to open to mixed Asian markets on Tuesday morning, with tech stocks under pressure and the rand near a one-year low as the market digests second term for US Federal Reserve chair Jerome Powell.
Powell was seen as the less dovish candidate for the position, and the prospect of higher future interest rates decreases the relative value of future earnings. Analysts noted the nomination could have an outsize effect this week, given a dearth of major data releases, while the Thanksgiving holiday in the US usually subdues activity generally.
Tech stocks have benefited from surging Covid-19 numbers in Europe as investors consider the prospect of further lockdowns, an issue that continues to weigh on sentiment.
In morning trade, the Hang Seng slipped 1%, while the Shanghai Composite added 0.43%.
Tencent, which gives direction to the JSE via the Naspers stable, fell 2.79%.
Gold was 0.21% higher at $1,808.41/oz, while platinum gained 0.86% to $1,019.81. Brent crude was 0.24% weaker at $79.31 a barrel.
The rand was flat at R15.86/$, hovering near a one-year low and losing almost 1% on Monday.
ICT and electronics group Reunert is due to report its results for the year to end-September later, saying in a recent trading update there had been an improvement in its performance with headline earnings per share set to more than quadruple, though it is battling supply-chain issues.
Source: businesslive.co.za
