JSE faces subdued Asian markets on Monday
Loading player...
The JSE faces subdued Asian markets on Monday morning, with investors considering US-China tensions and whether last week’s tech sell-off will continue.
Reports have suggested the US is considering banning the sale of components to China’s largest chipmaker, Semiconductor Manufacturing International Corporation (SMIC).
Though SMIC’s stock has fallen 15% in Hong Kong on Monday, the fallout has been contained, said Oanda senior market analyst Jeffrey Halley in a note.
“Markets have appeared to be adjusting to the constant US and China tit-for-tat as the new normal and getting on with life despite it,” Halley said.
Markets were volatile last week, when tech stocks were pummeled by what many analysts called a correction, given many of the world’s largest tech stocks have fared well in 2020.
In morning trade on Monday the Shanghai Composite was down 0.16% while the Hang Seng was little changed.
Tencent, which influences the JSE via Naspers, was down 0.4%.
Gold was up 0.14% to $1,935.80 an ounce while platinum had fallen 0.25% to $903.28. Brent crude was 0.33% lower at $43.18 a barrel.
The rand was 0.22% firmer at R16.58 a dollar.
US markets are closed for the three-day Labour Day holiday weekend, with international focus on the European Central Bank (ECB) policy announcement on Thursday.
Locally, focus is on SA’s second-quarter GDP numbers on Tuesday that are expected to show the dire effects of the Covid-19 pandemic.
On Monday, consumer goods group AVI is expected to report a mixed effect from Covid-19 on its various businesses for its year to end-June.
gernetzkyk@businesslive.co.za (mailto://gernetzkyk@businesslive.co.za)
Reports have suggested the US is considering banning the sale of components to China’s largest chipmaker, Semiconductor Manufacturing International Corporation (SMIC).
Though SMIC’s stock has fallen 15% in Hong Kong on Monday, the fallout has been contained, said Oanda senior market analyst Jeffrey Halley in a note.
“Markets have appeared to be adjusting to the constant US and China tit-for-tat as the new normal and getting on with life despite it,” Halley said.
Markets were volatile last week, when tech stocks were pummeled by what many analysts called a correction, given many of the world’s largest tech stocks have fared well in 2020.
In morning trade on Monday the Shanghai Composite was down 0.16% while the Hang Seng was little changed.
Tencent, which influences the JSE via Naspers, was down 0.4%.
Gold was up 0.14% to $1,935.80 an ounce while platinum had fallen 0.25% to $903.28. Brent crude was 0.33% lower at $43.18 a barrel.
The rand was 0.22% firmer at R16.58 a dollar.
US markets are closed for the three-day Labour Day holiday weekend, with international focus on the European Central Bank (ECB) policy announcement on Thursday.
Locally, focus is on SA’s second-quarter GDP numbers on Tuesday that are expected to show the dire effects of the Covid-19 pandemic.
On Monday, consumer goods group AVI is expected to report a mixed effect from Covid-19 on its various businesses for its year to end-June.
gernetzkyk@businesslive.co.za (mailto://gernetzkyk@businesslive.co.za)