The JSE was firmer on Tuesday morning, along with its global peers as markets rose on hopes that China would dial back its Covid-19 curbs.
Hopes that the Shanghai lockdowns will ease as the city recorded its third day of no Covid-19 cases outside quarantine facilities, along with prospects of supply-chain disruptions easing, lifted sentiment.
China’s economy is suffering under its zero-Covid9 policy, which aims to eliminate instead of living with the coronavirus, and outbreaks in cities. This is affecting supply chains across the world as Chinese supplies dry up.
“Equities are staging a modest bounce on prospects that Shanghai will ease lockdowns,” said Oanda senior market analyst Jeffrey Halley.
“We should continue watching the headline ticker for daily Omicron cases, most especially in Shanghai, where if literally one case appears again, any relief rally in the markets could disappear in a puff of smoke,” said Halley.
At 10.15am, the JSE all share had gained 1.27% to 70,088.03 points and the top 40 1.35%. Industrial metals had risen 1.81%, industrials 1.65%, resources 1.14%, financials 0.77%, banks 0.66% and precious metals 0.48%.
At the same time in Europe, London’s FTSE 100 had gained 0.5%, France’s CAC 40 1.27% and Germany’s DAX 1.33%.
Earlier in Asia, the Shanghai Composite added 0.65%, Hong Kong’s Hang Seng 3.08% and Japan’s Nikkei 0.42%.
At 9.38am, the rand had strengthened 0.65% to R16.0714/$ and 0.38% to R16.8031/€, while it had weakened 0.22% to R19.9382/£. The euro was 0.2% firmer at $1.0456.
Gold gained 0.17% to $1,827.19/oz, while platinum lost 0.22% to $945.69/oz. Brent crude was 0.46% firmer at $113.36 a barrel.
With Nico Gous
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