Rand applauds successful vaccine trial results to extend gains
JOHANNESBURG - The South African rand applauded successful vaccine trial results to extend gains on Tuesday as positive global sentiment overshadowed concerns regarding a deepening domestic economic quagmire according to NKC Research.
Mining and manufacturing data left little impression as the figures reflect the pre-lockdown period. Tomorrow, we expect that the rand will take cues from the South African Reserve Bank’s latest monetary policy meeting. Our expectation is that the central bank will implement another interest rate cut of 50 bps. At the close of local trade, the rand quoted 0.79 percent stronger at R18.22/$, after trading in the range of R18.18/$ - R18.37/$. The local unit traded slightly weaker overnight. Expected range today R18.00/$ - R18.50/$.
South African bourse
The JSE All Share (+1.11 percent) ended firmer yesterday, as large financial stocks (+2.38 percent) hitched on to the firmer rand. In the overall emerging market sphere, sentiment remained upbeat with the MSCI Emerging Market Index trading 1.39 percent higher.
Brent crude oil
The Brent oil price traded lower during the European session yesterday, but remained near its highest level in more than a month amid hopes of production cuts and higher fuel demand. At the close of local trade, benchmark Brent crude futures quoted 0.66 percent lower at $34.82pb. Crude prices traded in a narrow band during Asian trade this morning.
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